New Fannie Mae Update: HomePath Loan Program Will Be Discontinued
Fannie Mae has an inventory of the homes that they have foreclosed. These Fannie Mae owned foreclosures are called HomePath properties. For several years, Fannie Mae offered the HomePath Loan program for home buyers who qualified for conventional loans. The HomePath Loan program allowed home buyers who qualified to purchase a Fannie Mae owned property with very little down and the HomePath Loan program did not require mortgage insurance and no appraisal was required. Fannie Mae’s HomePath Loan program was available to owner occupant properties, second homes and vacation homes, and investment homes.
Fannie Mae Will Discontinue HomePath Loan Program Effective October 6, 2014
Fannie Mae has announced that the HomePath Loan Program and the HomePath Renovation Loan Program will no longer be effective October 6, 2014. For home buyers who are currently looking at HomePath properties and are pre- approved for a HomePath Loan, need to have the real estate purchase contract executed no later than October 6, 2014 and the mortgage loan application as well as all disclosures need to be dated no later than October 6, 2014. The HomePath Loan does not need an approval or does not need to be processed by October 6, 2014, however, the mortgage package needs to be dated by October 6, 2014. There are no exemptions and no exceptions. Just having the mortgage loan application dated October 6, 2014 is not enough. The signed ( both home buyer and home seller ) and dated real estate purchase contract also needs to accompanied with the signed mortgage loan application. All HomePath Loan programs need to close tentatively by February of 2015. The final dead line date for all HomePath Loan closing has not yet been determined.
Fannie Mae HomePath Properties
The discontinuation of Fannie Mae’s HomePath Loan programs will not discontinue Fannie Mae HomePath properties. Fannie Mae will continue to accumulate foreclosed homes and will be under the Fannie Mae HomePath home program where investors and home buyers can still purchase HomePath homes. However, effective October 6th, 2014, Fannie Mae owned home buyers need to use other mortgage loan programs. You can purchase a Fannie Mae owned property with a FHA loan, VA loan, USDA loan, as well as conventional loans but must qualify for whichever mortgage loan program you choose.
FHA Loans And Conventional Loans Are Options For Fannie Mae Properties
Fannie Mae’s HomePath Renovation Loan program will also get discontinued effective October 6th, 2014. Fannie Mae’s HomePath Renovation Loan program is an acquisition and construction loan all rolled into one. For those seeking a renovation and acquisition loan with a Fannie Mae owned property need to either go with a FHA 203k mortgage loan or a conventional HomeStyle mortgage loan. The HomeStyle renovation mortgage loan program will not be effective with the elimination of the HomePath mortgage loan program and the HomePath Renovation mortgage loan program.
Related> HomePath product update