The program
What you pay
Every published fee, itemized, with the section it comes from. This is the page other sites do not write.
Two truths first
This program costs more than a mortgage. There is a margin above the FHA loan rate and a monthly program administration fee. That is the price of getting into a home you could not otherwise finance. Anyone who tells you it costs the same as a mortgage is selling you something.
And your payment can change. Taxes and insurance move, and your payment moves with them, the same as any escrowed mortgage.
The published fee schedule
| Item | Amount | Source |
|---|---|---|
| Program underwriting / processing fee | $1,250 | Matrix 3.15.3 |
| Notary fee | $150 | Matrix 3.15.3 |
| HOA service fee (only if the home is in an HOA) | $250 | Matrix 3.15.3 |
| Homeownership Agreement management fee | 0.5% of price | Matrix 3.15.3 |
| First month's payment, collected at closing | Varies | Matrix 3.15.3 |
| Occupancy agreement security deposit, refundable | $100 | Matrix 3.15.3 |
| Minimum down payment | 3.5% of price | Matrix 3.7 |
Caps the lender cannot exceed
- 3% of priceCap on lender origination (Section A)Matrix 3.15.3
- 1% of loanCap on extra charges that benefit the originatorMatrix 3.15.2
What your monthly payment is made of
| Component | What it is |
|---|---|
| Principal | Amortized over 40 years. Reduces what you owe to take title. |
| Interest | The rate on the FHA loan, plus a program margin. |
| Mortgage insurance | FHA MIP on the agency's loan. |
| Escrow | Property taxes and homeowners insurance. |
| HOA | If the home is in one. |
| Program fee | Monthly administration fee to the agency. |
The insurance detail almost nobody mentions
Arrive Home requests and selects the hazard insurance for the property, and TRHEEA is listed as the named insured. Not you. Your own renter's insurance is optional, with a deductible not to exceed $1,000, and if you decline it you sign a waiver disclosure.
Source: Matrix 4.18 and 3.14.
Everything else
You pay for maintenance, repairs, and every other cost of the property. You will also sign an attestation agreeing that you are responsible for repairing minor defects found in the inspection within twelve months after closing. When the water heater dies, that is yours. Budget the way an owner does, not the way a renter does.
Source: Matrix 3.13.2.
Run your own numbers
Put in a real home price and see the full monthly obligation and the real cash to close.
Your monthly payment
$3,856
- Principal and interest, 40-year schedule
- $3,019.39
- Mortgage insurance
- $199.03
- Property taxes
- $412.50
Get connected
Every application goes through a licensed loan originator.