Fannie Mae owned properties may include a notation regarding HomePath financing. This financing is exclusively applicable to Fannie Mae properties and come with a few helpful options. The introduction to HomePath mortgages in this blog includes the most important facets of this program.
HomePath Program Options
HomePath mortgages are offered by approved local lenders. There are two types of options. The first is HomePath Mortgage, which applies to livable properties. The other is HomePath Renovation Mortgage for homes needing renovation; it allows home buyers to roll-in the cost of repairs.
Key Features of the Program
Both HomePath Mortgage and HomePath Renovation Mortgage may be used on owner-occupied homes, second properties, or investment units. Down payments may be a minimum of five percent and the money may be a gift, a grant, or even a loan under certain conditions. MI is not required, but there might be a cost associated with this option. Sellers may make contributions to settlement fees. Financing terms may range from fixed rate to interest-only and variable rates.
Use of Appraisals
HomePath Mortgages do not need appraisals. For HomePath Renovation Mortgages, an appraisal is ordered to estimate what the home might be worth once work is completed. The renovation cost rolled into the loan relies on this appraisal. The rolled in amount must be no greater than $35,000 or 35% of the estimated post-renovation value, whichever is less.
Obtaining HomePath Financing
Many local lenders offer HomePath financing. Buyers should compare this program to other ones available. When considering fixed rate, variable rate, and interest-only programs, review the advantages and disadvantages of each. Certain loan options may work better than others depending on your circumstances and plans. It is not required that you use HomePath financing to buy a Fannie Mae home. It is basically an option extended to buyers intended to make purchasing more affordable. As with all types of mortgages, closing costs and other things may differ with each lender. The introduction to HomePath mortgages in this article is strictly a summary of the program, may not include all of the exact requirements, and is subject to change. Always contact with a local mortgage consultant for the most up-to-date facts.