This Article On Fannie Mae HomePath Mortgage Was PUBLISHED On May 10, 2024.
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. It’s mission with these homes they have in inventory is to sell them as fast as humanly possible. To ignite and expedite the sale, they 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. 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. Speak With Our Loan Officer for Mortgage 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.
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.
Fannie May HomePath Mortgage Loans No Longer Exists As Of 2014. This BLOG on Fannie Mae HomePath Mortgage Loans was an older article from October 2013 but will remain for archival purposes.
Fannie Mae has select foreclosed properties available throughout the United States where qualified homebuyers can take advantage of these properties via getting a HomePath Mortgage Loans.
- Home Buyers who do not mind purchasing a foreclosed home, these Fannie Mae Homepath homes are an excellent opportunity for buyers to take advantage of them
- Home Buyers can purchase these Homepath Fannie Mae properties via FHA mortgage financing
- Borrowers who qualify for a HomePath Mortgage Loans can reap great benefits
- We now offer special Fannie Mae Homepath mortgage loan programs for these foreclosed Fannie Mae Homepath residential properties
- Homepath buyers can be owner-occupied buyers or second home buyers
In this article, we will cover and discuss Fannie Mae HomePath Mortgage Loans Versus FHA 203k Loans. Click here to apply for 203k loan
Advantages Of HomePath Mortgage Loans
Owner-occupied homepath mortgage loan borrowers only need to put down 3% of the purchase price where the minimum down payment for an FHA mortgage loan is 3.5%.
- There is no appraisal required nor appraisal fees
- Fannie Mae already has valued the property and prices it accordingly
- Another major advantage in obtaining a homepath mortgage loan is that there is no mortgage insurance required even with only a 3% down payment
Fannie Mae HomePath Mortgage Loans For Second Homes And Investment Homes
The homepath mortgage loan program also allows second home homepath mortgage loan financing as well as investor homepath mortgage loan financing.
- For second home homepath mortgage loan, the minimum down payment required is 10%
- Again, there is no appraisal requirement and no mortgage insurance requirement
- The investor homepath mortgage loan program requires a 20% down payment
- There is no appraisal requirement and no mortgage insurance requirement as well
Types Of HomePath Mortgage Loan Programs
Fannie Mae can assist with closing costs on all of its homepath mortgage loan programs.
- In the event, if the foreclosed Fannie Mae Homepath property needs repairs, Fannie Mae will lend up to ten thousand dollars towards repairs
- That amount will be added to the mortgage balance
- To find available foreclosed Fannie Mae properties and take advantage of Fannie Mae’s Homepath mortgage loan program, visit Fannie Mae’s homepath property inventory by visiting Fannie Mae’s Homepath inventory at www.homepath.com
- Log in the county and state in which you are interested
HomePath Mortgage Loan Credit Requirement
It is normally tougher to qualify for a Fannie Mae homepath mortgage loan program than an FHA mortgage loan.
- The homepath mortgage loan program is a conventional mortgage loan program
- So the standards are tougher when it comes to credit requirements, income requirements, and debt to income ratio requirements than FHA Loans
Home Buyers who are interested in a homepath mortgage loan, contact us at www.gustancho.com to see if they qualify. Home Buyers can also purchase a Homepath property by Fannie Mae even if they do not qualify for a homepath mortgage loan. Home Buyers can purchase the homepath property via FHA insured mortgage loan, however, you will not reap the rewards and special benefits and advantages of Fannie Mae’s homepath mortgage loan program. Speak With Our Loan Officer for Mortgage Loans
Fannie Mae HomePath Mortgage Loan Update
Fannie Mae has discontinued the Fannie Mae HomePath Mortgage Loan program in 2014 and is no longer available.
- Gustan Cho Associates will update you if Fannie Mae re-launches the Fannie Mae HomePath Mortgage Loan Program at a future date
- Fannie Mae will continue with the HomePath properties but HomePath property buyers need to seek other forms of financing
Frequently Asked Questions (FAQs)
- What is a Fannie Mae HomePath Mortgage Loan?
A HomePath Mortgage Loan is a financing option available exclusively for properties owned by Fannie Mae due to foreclosure. These homes are sold directly via the HomePath platform. They can offer specific benefits like low down payments and renovation loans. - What are the primary benefits of a Fannie Mae HomePath Mortgage Loan?
The key benefits include low down payments (as low as 3% for eligible buyers), no private mortgage insurance (PMI) requirement, and the possibility of securing renovation financing for properties that need repairs. - Can I purchase any property with a Fannie Mae HomePath Mortgage Loan?
No, only properties listed on the official HomePath website and owned by Fannie Mae are eligible. - Who is eligible to apply for a Fannie Mae HomePath Mortgage Loan?
Buyers must meet general lender requirements, such as a reasonable credit score, financial stability, and the ability to afford monthly payments. Specific requirements may vary by lender. - Is HomePath only for primary residences?
You can purchase investment properties or second homes using a HomePath loan if they meet program guidelines. - What are the requirements for the HomePath Ready Buyer program?
First-time buyers interested in the Ready Buyer program must complete a homebuyer education course by Fannie Mae. Successful completion can make them eligible for up to 3% closing cost assistance. - Do HomePath properties need renovations?
Not necessarily. While some properties may require repairs or renovations, others are move-in ready. For those needing improvements, renovation financing is available. - How long does it take to purchase a HomePath property?
The timeline depends on factors such as property condition, buyer financing readiness, and the processing time required by the lender. Buyers should consult with their lender and real estate agent to understand the specific timeline for their situation. - Are Fannie Mae HomePath Mortgage Loans better than conventional loans?
The benefits of a HomePath Mortgage Loan depend on individual circumstances. While the program offers unique advantages like low down payments and renovation financing, each buyer should consider their financial goals and consult a financial advisor or lender to make the best choice. - How do I apply for a Fannie Mae HomePath Mortgage Loan?
You can apply through a lender participating in the HomePath program. Check with local or national lenders to find one offering this type of mortgage. They will guide you through the application process and eligibility requirements.
FHA 203k Loans
FHA 203k Loans are a great alternative program for homebuyers of foreclosed properties that need work.
- FHA 203k Rehab Loans enables an owner occupant home buyer to purchase a fixer-upper
- The program allows the borrower to get an acquisition PLUS the rehab loan all in one loan program
- 3.5% down payment required on after improved value
For more information on FHA 203K Loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. Click here to apply FHA 203k Loans with us
