Banner
  • Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Mortgage Choices: FHA 203k or HomePath Loan?

Article

Those short sales and bank-owned homes may seem like a nice deal, but oftentimes they're cheap because they're less than perfect. So what mortgage should you go with if your new house needs a few touch ups?

If you’re house hunting and in order to save some money you decide to buy a cheaper home, odds are the compromise is that the home might need some repairs (whether minor or major). And Zillow Blog broke down which loan will be best for buyers expecting to make repairs.

The FHA is the regular FHA 203k loan, as well as the FHA Streamline 203k loan program. The latter is for lesser repairs and can be more closely compared to Fannie Mae’s HomePath Renovation loan. Fannie created the HomePath program because it was owning more homes than in the past, thanks to the downturn.

There are some things that are very similar about the two loan programs. For instance, both loan money for the price of the home plus the repairs required. And they both offer up to $35,000 for the cost of repairs (no brand new $75,000 great room here). Although there are differences: the FHA loan requires an appraisal but Fannie does not.

But when it comes down to it, the easiest way to choose a loan is by answering who owns the home

Read on here.

The two the most popular loan programs designed to help homeowners finance needed repairs are the FHA 203k program and Fannie Mae’s HomePath mortgage program. And both programs can actually be broken down further

Related Videos
Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice