The Fannie HomePath loan is a great opportunity to get into a new home at a low price, less underwriting and no appraisal. I have outlined some program highlights and underwriting guidlines.
- - No Mortgage Insurance
- - No Appraisal
- - Available to owners and investors
- - Less than perfect credit
- - 3% down sometimes less
This program is aimed at lightening up the inventory of homes that Fannie Mae owns. This particular program can only be used for Fannie Mae owned homes.
Below is a guidline over view to help you understand what can be done with the Fannie HomePath Loan
FNMA HomePath Mortgage
- * Property must be listed on the HomePath website (www.homepath.com ) to be eligible
- * Purchase only
- * 97 % LTV/CLTV for 1-unit primary residences
- * 90 % LTV/CLTV for i-unit 2nd homes and investment properties
- * No appraisal required ( sales price used to determine LTV/CLTV ). No inspections required. No condo questionnaire required.
- * No mortgage insurance
- * 620 Fico score needed to go to 80 % LTV
- * 660 Fico score needed to go above 80% LTV
- * 45 % DTI ( 50 % DTI with several strong compensating factors )
- * DU Approve/Eligible needed
- * 30 and 15 year FRMs available. 3/1, 5/1, 7/1, and 10/1 Libor Arms available.
- * Temporary buydowns allowed
- * If LTV is greater than 95 %, then there is no minimum contribution requirement from borrower's own funds( gift funds allowed for entire down payment; DPA's not allowed )
- *If LTV is between 80.01 % - 95 %, then occupant borrower must provide 5 % from own funds
- * When purchasing a NOO property and wanting to use potential rental income, you must have an executed lease agreement and at least 2 years of property management experience
- * Non-traditional credit not allowed
- * No properties with leaseholds or deed restrictions
LTV= Loan to value
CLTV= Combined loan to value
NOO= Non owner occupied
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