Posted on: 09th Aug, 2010 01:52 pm
I am entering month 27 of a 48 month Chapter 13 and am current on all payments. August 18, the Court should give me permission to purchase a house. My current house is under short sale, again, approved by my current loan servicer. I have new credit since filing in May of 2008. My middle credit score is 656. I owe approximately $250 on my credit cards combined. I earn over $5K monthly gross and have no other debt. I would like to know if I would qualify for a HomePath Renovation Mortgage OR an FHA 203b to buy a home that needs a little fixing up (10-15K) at a modest price of $135K. I am prequalified conventional FHA for 4.75%, but the lender doesn't do HomePath or 203b. In the long run, which would be more beneficial? FHA 203b or HomePath Renovation Mortgage. Total amount would be no more than $145 - $150K.
Hi kellialvaro!
Welcome to forums!
In my opinion, both FHA 203b and HomePath Renovation Mortgage are equally good. You can choose anyone of the options. However, in case of Homepath Renovation Mortgage, you won't be liable for paying any mortgage insurance. If you want to avoid insurance payment, you should go for Homepath Renovation Mortgage.
You should speak to other local FHA lenders who can offer you either FHA 203b or HomePath Renovation Mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In my opinion, both FHA 203b and HomePath Renovation Mortgage are equally good. You can choose anyone of the options. However, in case of Homepath Renovation Mortgage, you won't be liable for paying any mortgage insurance. If you want to avoid insurance payment, you should go for Homepath Renovation Mortgage.
You should speak to other local FHA lenders who can offer you either FHA 203b or HomePath Renovation Mortgage.
Feel free to ask if you've further queries.
Sussane