3% Down...Or 3.5% Down

By
Mortgage and Lending with Peoples Mortgage Company

In Arizona we have a golden opportunity to help the local economy (housing market in particular)...Why not specialize in the HUD Foreclosure market and or Fannie Mae's Home Path Product???  Both entities pay closing costs...Both down payments can be gifted.  With a 640 credit score for HUD and a 660 score for Home Path the credit requirements are not that outrageous. 

Why Doesn't Fannie Mae reach out more to the Real Estate Community?  Many Realtors I meet with over 10 years of experience do not know of Home Path and what it can do.  After 3% down payment for owner occupants they do offer 10% down for investors if the investor does not own more then 4 rentals.  Mortgage Insurance and Appraisals are not required on Home Path loans with any down payment.  This is both a time saver and a money saver.  Considering Home Path homes can sell in the mid $300's, if you looked at a Mortgage Insurance Rate card you may have a MI payment of over $150 a month with 5% down.  So buyers are saved money both in the down payment and the monthly payment. This is a great way for investors to get into the rental game to see if you like it.  This is a great way for parents to help thier kids who might have been foreclosed on recently or renting. 

Fannie Mae needs to do a better job in reaching out to the Real Estate community as a whole and telling them how many different ways the public can use thier products.  At First California Mortgage we are a Home Path approved lender (per the Home Path website) with experience helping first time buyers achieve the American Dream of home ownership.  Follow me on Twitter or on Facebook...

Comments (2)

Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Randal, How about USDA?  That is a great fit in many areas that will give you yet another low or No down option for buyers.

Dec 14, 2010 04:14 AM
Randal Kaufman
Peoples Mortgage Company - Scottsdale, AZ
Home of Energy Efficient Loans

While USDA is a good program for 20 miles outside the central city these two are not likely to run out of funds.  I am hoping more buy Home Path so they can close in 25 days and we can get these foreclosures off the books.

Dec 14, 2010 04:56 AM