Here are answers to the most frequently asked questions, Regarding HomePath and HomePath Renovation loans:
1)Not all properties owned by FNMA are eligible for HomePath financing.
2)The minimum credit score for a down payment less than 20% is 660. For down payments of 20% or more the minimum credit score is 620.
3)Appraisalsare required on HomePath Renovation mortgages.
4) If it is determined that the repairs required to bring the property up to average and livable condition plus any required contingency exceed $35,000 then the property will be deemed unacceptable for the program.
5)Colonial’s current rate for HomePath Mortgages is under 3.875%.
6)Closing costs vary depending on the loan to value, credit score, property type and down payment.
7) Regardless of occupancy type 2-4 unit properties require 25% down.
8)The minimum down payment is 3%. For owner occupied single family dwellings.
9) Recent changes in Fannie Mae pricing now make the 3% option price effective.
10)No mortgage insurance required. Compared to FHA the payment should always be lower.
11)Seller can pay up to 6% of the sales price towards buyer’s closing costs on owner occupied and second home purchases.
12) Seller contributions cannot exceed 2% on investment properties.
13)Condotels are not eligible. Colonial will not finance condominiums or manufactured housing using renovation financing.
14)Investors and second home purchasesare eligible for both programs.. Second Homes and investment properties require 10% down for HomePath.
15) HomePath Renovation investment properties on single family dwellings require 15% down.
15) Investors who own 4 or more financed properties are required to put 25% down if purchasing a new investment property. Minimum credit score is 720.
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