HomePath: A great program for 1st time buyers

Mortgage and Lending with Fifth Third Bank NMLS #457556

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

To search for eligible HomePath propeties, visit





I've just signed the buying contract for a homepath house. My dilemma is this: they didn't ask me where the 1% down payment came from but I don't know the requirement for the rest of the down payment. Can it be from my salary?? I make enough on 1 check to cover the rest of the down payment. Do I have to have the money for 2 months saved as in an FHA?

thanks for your help!

Apr 01, 2011 03:58 PM
Kevin Weaver
Fifth Third Bank - Cincinnati, OH
an experienced mortgage professional NMLS #457556

Hi Ana,

Thanks for reading!  The rest of the down payment can be from your salary, that is just fine.  Most underwriters want to see all funds cycle their way through your bank account so save your paystubs to match up with any net pay deposits on your bank statements.  FHA doesnt necessarily requires all the funds to be "seasoned" for 2 months.  The main thing is being sourced and since your salary is verifiable as your own funds you should be in good shape here.  Let me know if you have any further questions.

Kevin Weaver

Apr 04, 2011 01:36 AM