Fannie Mae HomePath Mortgage
This Article On Fannie Mae HomePath Mortgage Was Written By Gustan Cho
Fannie Mae is now offering the Fannie Mae HomePath Mortgage Loan Program to qualified home buyers. A Fannie Mae HomePath property is a Fannie Mae owned home so no appraisal is required and is available for owner occupant homes, vacation homes, and investment homes with low down payment required. There are two different type of Fannie Mae HomePath Mortgage Loan Programs. The standard Fannie Mae HomePath Mortgage loan and the Fannie Mae HomePath Renovation Mortgage loan.
Standard Fannie Mae HomePath Mortgage
Fannie Mae has thousands of foreclosed homes in their inventory and these homes are called HomePath properties. Fannie Mae is not a real estate investor and their mission with these homes they have in inventory is to sell them as fast as humanly possible. To ignite and expedite the sale of these homes in Fannie Mae’s inventory, Fannie Mae have created the HomePath Renvation Mortgage program which enables a qualified home buyer to purchase HomePath homes with a low down payment and flexible mortgage lending guidelines which includes no appraisal requirements. To qualify for a 5% down payment HomePath Mortgage loan, a mortgage loan borrower needs a 660 FICO credit score. HomePath Mortgage loans are conventional mortgage loans and conventional mortgage guidelines apply in qualifying a borrower for a HomePath Mortgage Loan.
HomePath Mortgage loans are available for owner occupant, second homes, and investment homes. There is no private mortgage insurance requirement for HomePath Mortgage loans.
Fannie Mae HomePath Renovation Mortgage Loans
Fannie Mae HomePath Renovation Mortgage loans are for those home buyers who want to purchase a HomePath home but the property needs minor repairs. HomePath Renovation Mortgage loans are the cost of the home plus the funds to renovate the HomePath property. There are two appraisals required, as is appraisal and as completed value appraisal. All other credit and qualifying terms are the same as the standard HomePath Mortgage loan program with regards to minimum down payment, credit scores, no mortgage insurance required, and debt to income ratios. Fannie Mae’s HomePath Renovation Mortgage loans are available for owner occupant homes, second homes, and investment homes.
Other Facts About Fannie Mae HomePath Mortgage Loans
Fannie Mae HomePath mortgage loan programs is an excellent way of purchasing a Fannie Mae owned property where a home buyer can put very little money down and have no monthly mortgage insurance as well as no appraisal required. However, HomePath mortgage loan do have higher interest rates compared to standard conventional mortgage rates.
2015 Update On Fannie Mae HomePath Mortgage Loans
Effective August 2014, Fannie Mae has discontinued the HomePath Mortgage Loan Program. The HomePath property program is still in existence, however, home buyers buying Fannie Mae HomePath Properties need to seek other forms of financing. Contact Gustan Cho Associates if you are interested in Fannie Mae’s HomePath properties and need financing.