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What are homeopath rates vs regular mortgage rates. 735 credit score and buying investment prop


Got a 735 credit score, looking in Oregon, like the concept of 10% down as it lets me get more cheap leverage, but question is how much more expensive is the leverage as I could buy traditional/less leverage/better rates.  Looking at investing $50-100k in equity into new property. 
  • October 05 2012 - Portland
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Answers (4)

Homepath Does allow investors to purchase, at a Minimum 10% down, historically however the homepath does carry a bit higher rate and usually require paying some discount points. The upside of Homepath, no appraisal, no monthly Mortgage insurance, so if you are comfortable with the price and the condition of the home then it is a good way to go. If you are you looking at going Conventional financing, on an investment property there is usually a minimum 15% down payment and it will require an appraisal and although minimal a  monthly mortgage insurance premium . The difference in rate can vary but in most cases you can get .25-.5% better in rate and pay minimal if any discount points. I have helped many investors purchase Homepath homes and the majority of them that do their due diligence of course with our advice included have seen some incredible return on their investment, whether that be from a monthly cash flow basis or to turn around and sell the property after 6 months. It all depends on your tolerance to risk and availability of funds, but if it were my $100K I would limit my out of pocket expense both on the down payment and the investment into rehab, and buy more than one home to make your cash on hand go further. I hope this helps, and if you would like to see a comparison of Homepath to Conventional on a property you are interested in I can put together a total cost analysis so you can look at them with real time rates and numbers so you can make an educated decision, 
  • October 08 2013
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I don't believe Homepath is available to investors, but that may have changed. However, FHA has rehab loans that are available. Contact Jennifer Leon at Umpqua Bank. She knows everything there is to know about this and more. I've never done business with her, but I've been to her presentations and left extremely impressed.
  • October 06 2012
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Profile picture for Cindy Quinton
I recently asked this very question of a lender friend. He said that the only way to see what worked best was to run the scenario for the house both ways and see which was the better deal. If you plan on re-selling quickly the higher interest rates may not matter much.

Have you been unable to find conventional financing with 10% or less down?
  • October 06 2012
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I just helped an investor client buy a Portland duplex and a triplex that will perform very well - positive cash flow.  You should be posing the rates & homepath question to a mortgage broker.  If you need a recommendation, drop me an email.
  • October 05 2012
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