HomePath is Fannie Mae's REO brand. When you see "Property eligible for HomePath" here's what it means:
The property qualifies for a Fannie Mae HomePath loan. In order to qualify for these loans, there are two, a property must have functioning systems, windows and doors. The house must be structurally sound with no environmental issues.
There is the HomePath Mortgage and the HomePath Renovation Mortgage. Here are the details of each:
HomePath Mortgage:
Although Fannie Mae prefers owner occupants, the HomePath mortgage is available to investors and 2nd home purchasers as well. Owner occupants can qualify for a loan with as little as 3% down. Investors need 10% down. The HomePath mortgage does not require an appraisal which will save a buyer ~$400. There is also no mortgage insurance, which is very attractive considering where mortgage insurance rates are headed.
HomePath Renovation Mortgage:
This loan is only available to owner occupants and must be used to add value to the property. The money is put in an escrow account at closing for the buyers to have access to as the complete improvement projects. Buyers can apply for both HomePath loans.
There are currently 20 lenders that offer HomePath financing nationally and only 4 lenders that are offering the HomePath Renovation loan. Finding a qualified lender may be the most challenging part of getting this financing.
Comments(1)