HomePath: A great program for 1st time buyers

Recently, I've had a few clients inquire about the HomePath financing available for the purchase of Fannie Mae-owned properties.  This program is often misunderstood and I thought I would take a moment to share a few highlights in light of the strong level of inventory currently available.

Currently here in the Cincinnati area, there are 210 properties listed in Hamilton County alone in a wide varierty of price ranges.  I am more of an FHA guru myself but looking more closely at this program I can see where there is a whole lot of opportunity to make use of HomePath.

1)  The 3% down payment requirement can be a gift or unsecured loan from family member or even the client's employer. 

2) No PMI, even at 97% LTV there is no PMI meaning the buyer can afford more home.  No UFMIP either like we have with FHA.

3) Perhaps my favorite: NO APPRAISAL.  I hate dealing with Appraisal Management Companies for the most part and if my buyer can avoid dealing with them too all the better!  Fannie Mae has determined that they will automatically use the sales price as the property value

4) Even investors can utilize the program up to 90%, we lose the gift funds option with the investors but there are not many options to acquire investment properties at 90% LTV out there these days!

5) Up to 6% seller concessions are permitted on primary residences.  With FHA proposing the elimination of 6%, this can come in handy in markets where transfer taxes are higher forcing up the cost to the buyer significant, especially on lower priced homes where 3% just does not go very far.

We offer the HomePath program across the country.   For more information, feel free to contact me through ActiveRain or visit my website at www.UseFHA.com.

To search for eligible HomePath propeties, visit www.HomePath.com