This Article On Fannie Mae HomePath Mortgage Was PUBLISHED On August 5th, 2014
Fannie Mae is now offering the Fannie Mae HomePath Mortgage to qualified home buyers.
- A Fannie Mae HomePath property is a Fannie Mae owned home
- Therefore, no appraisal is required and is available for owner occupant homes, vacation homes, and investment homes with a low down payment required
- There are two different types of Fannie Mae HomePath Programs
- The standard Fannie Mae HomePath and the Fannie Mae HomePath Renovation Mortgage loan
In this article, we will discuss and cover the discontinuation of the HomePath Loan Program by Fannie Mae.
Standard Fannie Mae HomePath Loans
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
- Fannie Mae’s 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 has created the HomePath Renovation Mortgage program
- This 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, a borrower needs a 660 FICO credit score
- HomePath Mortgage are conventional loans
- Conventional mortgage guidelines apply in qualifying a borrower for a HomePath Loan
HomePath loans are available for owner-occupants, second homes, and investment homes. There is no private mortgage insurance requirement for HomePath loans.
Fannie Mae HomePath Renovation Loans
Fannie Mae HomePath Renovation Mortgage is for those homebuyers who want to purchase a HomePath home but the property needs minor repairs.
- HomePath Renovation loans are the cost of the home plus the funds to renovate the HomePath property
- There are two appraisals required, as is an appraisal and as completed value appraisal
- All other credits and qualifying terms are the same as the standard HomePath program with regards to the minimum down payment, credit scores, no mortgage insurance required, and debt to income ratios
Fannie Mae’s HomePath Renovation loans are available for owner occupant homes, second homes, and investment homes.
Other Facts About Fannie Mae HomePath Loans
Fannie Mae HomePath loan programs are an excellent way of purchasing a Fannie Mae owned property:
- A home buyer can put very little money down
- They have no monthly mortgage insurance
- No appraisal required
However, HomePath loans do have higher interest rates compared to standard conventional mortgage rates.
2015 Update On Fannie Mae HomePath 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.
August 5, 2014 - 2 min read