HomePath Mortgage Loans Versus FHA Renovation Loans
This BLOG On HomePath Mortgage Loans Versus FHA Renovation Loans Was UPDATED On October 22nd, 2018
HomePath Mortgage Loans are a special type of mortgage loan program developed by Fannie Mae. Unfortunately, HomePath Mortgage Loans no longer exists. Fannie Mae has discontinued this loan program. Fannie Mae did not discontinue HomePath Properties but it did discontinue its mortgage loan program:
- The HomePath mortgage loan program was created by Fannie Mae as a solution to sell the housing inventory Fannie Mae had in its inventory
- Homepath mortgage loans were available for both owner-occupied properties, second homes, and investment homes
- A primary owner-occupied home buyer used to be able to qualify for HomePath Mortgage Loan with as little as a 3% down payment
An investor can qualify to purchase a HomePath Fannie Mae foreclosure home with as little as a 10% down payment.
No Appraisal Needed And No Private Mortgage Insurance On HomePath Mortgage Loan Programs
Foreclosed Fannie Mae properties that are available via the HomePath mortgage loan program did not require private mortgage insurance nor does it require an appraisal.
- Homebuyers who were interested in a Fannie Mae HomePath properties can visit Fannie Mae HomePath website at www.HomePath.com
Fannie Mae HomePath Mortgage Loan Highlights
Some of the major benefits of Fannie Mae’s HomePath mortgage loans were the following:
- 97% loan to value mortgage loans for owner-occupied residential homes
- 90% loan to value mortgage loans for second homes and investment homes
- No appraisal required
- No private mortgage insurance required
- There is a minimum credit score requirement
- 620 credit score for the loan to value properties of 80% or lower
- A minimum credit score of 660 for loan to value of 80% or higher
- Borrowers needed a Fannie Mae DU Automated Underwriting System approved eligible status
- There was a maximum 45% debt to income ratio requirement
- Condominiums qualified as long as the condo complex has sufficient fidelity and master hazard insurance and flood insurance if it is in a flood zone
HO6 insurance was also required.
Update On HomePath Mortgages
Fannie Mae has discontinued the HomePath Mortgage Loan Program in 2014.
- HomePath Mortgage Loans are no longer available today
- However, Fannie Mae still has HomePath homes available
- Home Buyers of HomePath homes need to seek other forms of financing
- Home Buyers can still purchase HomePath homes by Fannie Mae with Conventional Loans, FHA Loans, VA Loans, USDA Loans, and portfolio loans
FHA 203k Loans is the loan program of choice to purchase fixer-uppers. HUD, the parent of FHA, allows home buyers to purchase fixer-uppers with an acquisition and construction loan with 3.5% of after value of the property. Needs to be owner occupant one to four-unit residential properties. Condos needs to be HUD-Approved Condominiums.