Fannie Mae HomePath Loan Program – Another great method of financing
With so many types of financing options, not all are discussed by loan officers. Many loan officers don't know much about such programs as USDA, The Fannie Mae HomePath, or My Community. The HomePath program is not known by many and is underutilized. Not only does it allow you to put 3 percent down with no MI, monthly mortgage insurance, but that you can get very good homes at discounted prices.
Highlights of the Home Path Program
- Minimum of 3 percent down
- Down payment can come from borrowers own funds, gift, grant, special loan programs from local or state government, loan from a non-profit, or employer
- No appraisal is required – Property sold ”As Is” – I personally suggest a home inspection
- No monthly mortgage insurance
- Maximum of 6 percent seller help on primary residences. Sometimes Fannie Mae will list a home with a 3.5 percent seller help incentive if closed by a certain date.
- Primary, Second, and Investment homes allowed under this program. Down payment requirements can change.
- Eligible Properties – 1 to 4 unit, PUDs, site condos (low rise condo or building type of detached – Doc #6122) – The property must be designated by Fannie Mae on their web site : HomePath
- Minimum credit score of 660 for 3 percent down. 620 scores allowed if putting 20 percent down or for 2 unit purchases.
- Maximum Loan Amounts – High balance loans allowed based on the Fannie Mae high balance product (Doc#5346)
- HomePath has a renovation program. The property must be designated with a renovation logo on Fannie Mae’s HomePath site to be eligible.
- Title Services – Not required to use Fannie Mae’s title services – Subject to the terms of the contract
Summary – The major highlight of this program is that you can put down as little as 3 percent and have no monthly mortgage insurance. One needs to keep in mind that Fannie Mae doesn’t fix all the properties up, that they are sold “As Is”. And I would recommend getting a home inspection.
One thing that does need to be recognized is that these home prices are not negotiable. The reason being is that Fannie Mae has already discounted these homes, some of which are being sold for much less. The main reason is that these are homes that have foreclosed upon that Fannie Mae is holding on their books, and want to get rid of them as quickly as possible. Lastly, these homes can be found on Fannie Mae’s web site, Fannie Mae HomePath homes
Find a Fannie Mae home now – Click HomePath homes
Realtors can sell Fannie Mae REOs. Become a FNMA approved listing agent – Click here
Realtors Resource page for selling/buying – Click here
Realtors... would love to hear your opinions if you have had a buyer use this program.... and how did commissions work for you? Listing agent? Selling agent?