Comparing HomePath Financing to FHA Mortgages

Kate, I'm buying a house and am interested in the HomePath program and FHA mortgages. Which offers the better deal? Samantha

Dear Samantha, Buying a house and getting the best deal requires smart comparisons. So lets's start with similarities.

HomePath and FHA provide low down payment solutions for home buyers, available through participating lenders. You'll find both offer the security of fixed rate mortgages and consider accepting less than perfect credit.

Because HomePath restricts home buyers to properties acquired through Fannie Mae foreclosure, the selection of homes is limited. But the lack of an appraisal requirement is certainly appealing.

FHA currently requires a little more downpayment. That alone could entice a home buyer into using HomePath, all else being equal.

HomePath financing is available without mortgage insurance, a hot button among homeowners but Fannie Mae is careful to add that an approved lender needs to be consulted for details. Most FHA programs require mortgage insurance.

HomePath with no appraisal requirements and lower downpayments is certainly attractive. But don't overlook today's FHA, new and improved!

Go here to discover how homeowners across America are benefiting from FHA mortgage loans. You could be of them too.

Years in the making: More home buying questions and answers

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