I've never done the Homepath loan but I did help a client a few months ago buy a home with a Homepath Renovation mortgage. Other than the limited number of lenders who handle Homepath loans, there weren't any issues with it... actually went a lot better than I expected.
Working on a construction loan now with them. I've had the same issues with them as other banks/lenders, just a cheaper interest rate. You might pay some more points, but the interest rate is so low, there's alot of other debt you should tackle (and maybe even fund retirement accounts) before you pay off that debt.