When it comes to mortgages, there are a lot of options to sort out. When I am working with clients, they often ask me about mortgage rates and down payments, and the answer can vary.
In Part 1 of the series, we examined FHA mortgages. In Part 2, we took a look at Conventional Mortgages. Part 3 examined VA Loans. In Part 4, we looked at USDA Loans.
This final part of the series is dedicated to HOMEPATH financing. This is meant to be an overview - a licensed Loan Officer will help you examine all of the options more closely to help you determine the right choice for you.
HOMEPATH: Homepath loans are for homes that are already owned by Fannie Mae. These are homes that were originally purchased with a Fannie Mae loan, but have since gone through the foreclosure process and are being sold again as "REO" properties. They are not owned by a bank, but instead are owned by FNMA- the Federal National Mortgage Association, or "Fannie Mae".
Minimum Down Payment: 3% for the first purchase, 10% for a second home or investment property. Also, there is no appraisal required.
Mortgage Insurance: none.
Minimum Credit Score: 620 minimum.
Ownership Types: Primary residence, second home OR investment property.
Property Type: Usually a "fixer-upper." Check www.homepath.com to see available inventory.
Pros: Low down payment, no appraisal, no mortgage insurance. Can be used for a primary residence, secondary, or invesment. Can be used for up to 4 properties at one time.
Cons: Usually a higher interest rate dues to the lack of mortgage insurance required.
Want to live in your dream neighborhood for 3% down? Call me at 720-341-5235 to find out what's available in Henderson, Thornton, Northglenn, Broomfield, and Westminster!
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