Fannie Mae Homepath Mortgage Loans… NO Appraisal, NO MI and NO Condo Certification!
Looking for a fix up property… with mortgage financing readily available?
You believe you are either a handy person when it comes to home fix up projects or maybe you know someone who is handy. Shopping for foreclosed homes seems like a great idea for you, as foreclosed properties are the properties most likely to have some fix up projects that need to be completed.
This is a great idea, right up until you are not able to get financing on that foreclosed property. You may qualify for a mortgage, but the property must also qualify for financing and this is determined by an appraisal inspection. If the appraiser determines there are work orders on the property, the lender may flat out turn down the mortgage or it will be a requirement that the work be completed prior to closing. And, to make it interesting, generally speaking the seller will not allow you to do the work and many times will not do it themselves either. Pretty much turns the property into a cash only opportunity.
Do not give up… you just need to look in the right place. Fannie Mae has a number of foreclosed properties on their books, and believe it or not, they are not interested in being in the business of retaining properties, so they came up with special financing, called the Homepath Mortgage.
The Homepath Mortgage might be just what you need to meet your home purchase goal of doing some fix up yourself. Not all the properties are going to have repair needs, but it is one of the best resources for finding those that do! Depending on the property, there are other special features of the Homepath Mortgage, which make it the right choice for today’s buyer.
No appraisal – so there are not going to be any work orders of items to be repaired prior to closing or any other property issues.
No Mortgage Insurance – even though you have less than 20% down payment, it will not be required.
Down payment starts at 3% requirement for owner occupied – lower than FHA requirement of 3.5%
Down payment starts at 15% for investment properties – lowest investor down payment requirement available in the market.
Seller paid closing costs - up to 6% for owner occupied (please note: often, the banks will only give 3.5%, best to make full price offer if you want the full 6%, just my opinion) and 2% for investment properties.
No Condo Certification – no extra cost of paying for a condo review or worries about passing the requirements.
First Look Feature – owner occupied buyers have a 15 day advantage to purchase these properties before they are available to investors.
To find a property that qualifies for Fannie Mae Homepath Financing, go to www.homepath.com and you will be able to search all the properties that Fannie Mae has available in your area.
Please do not hesitate to contact me if you have any questions or concerns regarding this special financing, I have been writing these mortgages for years, it just might be the perfect mortgage for you!
Thanks! Deb – The Mortgage Lady
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