Renovation loans from HomePath facilitate buying of properties that need repair. The expense of renovations can be rolled into the loan principal, making buying the house more affordable. Below is some useful information on renovation loans from HomePath.
Listings that Qualify
HomePath loans only apply to Fannie Mae owned properties. There are normally a wide range of lenders approved to offer HomePath loans. Houses needing minor to moderate renovation may also qualify for special renovation loans from HomePath. This is typically noted within the listing details.
Who Can Use HomePath Loans
Beyond the listing being eligible for HomePath loans, buyers must also meet certain guidelines. Specific criteria can vary by lender but typically includes income and FICO score requirements. Speak with your lender for information on this.
Specifics on Renovation Loans From HomePath
Renovation loans from HomePath include some great terms. Buyers may put down as little as 5%. Additionally, the funds can be personal funds, a gift, a grant, or even loaned from designated approved organizations. Fixed and adjustable rate options are available. Another cost saving term is that no mortgage insurance is charged. Lastly, it is possible for sellers to make contributions towards closing fees.
An appraisal is perfoemd to determine what the value of the property may be once work is done. The amount of the mortgage will be based on the purchase price plus expense for repairs. Renovation expenses can be as high as $35,000 or 35% of the end value.
More On HomePath Loans
When looking into purchasing a Fannie Mae property that qualifies for HomePath, you should contact an authorized lender as soon as possible. Your lender can furnish more comprehensive information on whether you qualify for the program and what the loan costs will be. This will help you decide if the property will be financially optimal. For additional details on this and other related programs, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or firstname.lastname@example.org.