HomePath loans will now require five percent down, instead of the three percent down payment previously required.
HomePath Financing is the Fannie Mae program which offers special incentives through participating HomePath lenders to finance Fannie Mae owned properties.
As explained on the HomePath site, "HomePath Mortgage allows a buyer to purchase a Fannie Mae-owned property with a low down payment, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions towards closing costs are allowed. Available for owner occupants and investors." That low down payment is now five percent for owner occupants.
The other type of HomePath finance is HomePath Renovation Mortgage, which the webpage explains, "HomePath Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors."
Most listings will include language referencing the new five percent down payment, and the HomePath website will also soon be updated.
No private mortgage insurance remains one of the most attractive aspects of HomePath Mortgage financing, and that has not changed.
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