Mortgage Calculator: Traditional vs. TruePath Mortgage

Updated October 1, 2024
Our Mortgage Calculator is no longer available. 

Are you interested in buying your first home, but can’t afford a down payment? While traditional mortgages generally require a down payment, there are other options to help you get that dream home—including the TruePath Mortgage through TCHFH Lending, Inc.

TruePath Mortgage is available through TCHFH Lending, Inc., a wholly-owned subsidiary of Twin Cities Habitat for Humanity. TruePath Mortgage is designed to help first-time homebuyers secure a home they love with a mortgage payment they can afford.

It's a perfect option for low- and moderate-income homebuyers in the Twin Cities seven-county metro area. And this mortgage can be used on a home built by Habitat for Humanity or a home you find on the open real estate market. To access the TruePath Mortgage, you must also participate in Twin Cities Habitat for Humanity's Homeownership Program, which provides education and support to set you up for homeownership success.  

TruePath Mortgage Details

There are many financial benefits to a TruePath Mortgage, including:

• 5.75% fixed interest rate, 5.8095% APR*
• 30-year term
• Affordable monthly housing payment set at 30% of household income
• No mortgage insurance
• Maximum mortgage of 96.5% of home’s value – down payment and affordability assistance available depending on income qualification and availability

What Can You Afford?

The TruePath Mortgage product is designed to keep your housing payment affordable at 30% of your gross monthly income. As a general rule, you should not buy a house that requires you to have a monthly payment higher than 30% of your monthly income. 

Many people will qualify for a larger loan and it can be tempting. But sticking with a monthly payment of 30% or less of your income will help ensure you can pay for your other regular expenses. It’ll also help you be prepared for unexpected expenses. 

Do You Qualify?

To qualify for a TruePath Mortgage, there are a few application requirements to meet. Applicants must:

• Complete the Habitat Homeownership Program: This prepares you for the responsibilities of homeownership.
• Meet the income eligibility guidelines and other financial guidelines like credit score, debt, employment, and bankruptcy.
• Be a first-time homebuyer: Cannot have owned a home in the past three years.
• Currently live in the Twin Cities seven-county metro area and have lived there for at least one consecutive year.
• Buy a primary residence: The mortgage must be for a home you plan to live in.

Find Out If You Qualify

Interested in taking the next step toward homeownership? Fill out the Habitat Homeownership Eligibility Form to find out if you qualify.

Whether you find a loan through TCHFH Lending, Inc. or another lender, take the time to understand the financial requirements and think about how much you are comfortable spending. This will put you on the right track toward finding the loan that is right for you.

*For example, on a $240,000 30-year fixed rate loan at an annual interest rate of 5.75% with no down payment, your monthly payment would be $1,400.57 and the APR would be 5.8095%. The monthly payment amount does not include sums for homeowner’s insurance premiums or property taxes, all of which must be paid in addition to the principal and interest on your mortgage loan.