Whether you are an first time home buyer or a move up home buyer in Illinois you really should take a look at the Fannie Mae Hompath homes. The Fannie Mae Homepath mortgage is useable only on Fannie Mae Homepath homes which are Fannie Mae forclosures. Why is the Homepath mortgage program so good you ask? Here are a few reasons.
- No appraisal is required
- There is no upfront mortgage insurance like there is with an FHA mortgage
- The minimum down payment required is 3%
- There is no monthly mortgage insurance
The no appraisal requirement is a great way for Illinois home buyers to purchase a home that may need a little work. With an FHA or Conventional loan the appraiser will make a note of repairs that are need and in most cases these repairs will need to be done prior to closing. One other benefit of not requiring an appraisal is that you are able to close on much quicker.
Not having upfront or monthly mortage insurance is a great savings to homebuyers. Recently the monthly mortgage insurance on an FHA loan has almost doubled. By not having to pay monthly mortgage insurance the home buyer can afford more home.
Other than a VA or USDA loan the Homepath mortgage has the lowest down payment requirement out there. The minimum down payment on an FHA loan is 3.5% so the Homepath mortgage saves the home buyer money that they can use toward items in their new home.
Many people may think that these Homepath homes are in bad shape but many of the homes are newer and are in great shape. To lookup Homepath homes in your area go to www.homepath.com. If you have additional questions regarding the Homepath mortgage feel free to contact me at 815-899-3848.