We are currently working with a couple of people who are buying a home that is owned by Fannie Mae and are getting approved for the new HomePath mortgage program. As mortgage guidelines have gotten tighter over the last couple of years, it is nice to see a program come out that actually has features like no appraisal and no mortgage insurance.
If you are interested in buying a home that is owned by Fannie Mae as your primary residence that is not in need of repairs, the “regular” Fannie Mae HomePath mortgage program is right for you.
You will often see homes that are eligible for this with the logo seen above somewhere on the sales sheets and information about the HomePath program will usually be in the remarks section of the MLS.
HomePath mortgage financing highlights include:
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- You may qualify even if your credit is less than perfect
- Available to both owner occupiers and investors
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
- No mortgage insurance
- No appraisal required — the sales price is the value
- No declining markets policy
- No loans under $20,000
- No more than 10 financed properties
- No prepayment penalties
If you are interested in buying a home that is owned by Fannie Mae as your primary residence that is in need of repairs, the HomePath renovation mortgage program is the one that you will want to look into.
You will often see homes that are eligible for this program with the above logo on the sales sheets and will usually find more information in the remarks section of the MLS.
HomePath renovation mortgage highlights:
- Financing to fund both your purchase and light renovation
- Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
- No mortgage insurance
If you are considering buying a home that is currently owned by Fannie Mae, be sure to look into the HomePath mortgage financing program. I don’t remember the last time that I saw a loan program that said “no appraisal, no mortgage insurance and a 3% down payment!” But then again, I don’t remember a time when Fannie Mae owned so many homes. No wonder so many great deals are being had. Don’t miss out!
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1. I have a 630 credit score and had a bankrupcy three years ago, could I qualify for a homepath loan
2.
With my credit score, would I be able to qualify for an interest only loan?
3. Can the entire down payment to gifed by a family member
4. Can I use the stimulus cash as a down payment
@Marissa,
Thanks for stopping by and commenting!
For questions 1-2, the direct answer is “maybe” and “no”. Lenders look at your entire financial profile, not just your credit score when applying for a loan. Lenders look at your income, credit score and asset profile — so with just a credit score, it wouldn’t be wise to say “yes or no”. Call or email anytime and we can figure out if we can get you qualified.
3. Yes.
4. If you are referring to the $8,000 tax credit for first time home buyers, no. You will claim that on your tax return. If you are referring to any other type of stimulus cash from the government, I don’t see why not.
Call or email me anytime with questions!
Justin
I’ve heard that when you use a private loan (something other than FHA) then you are not eligible for the $8000 tax credit Is that true. Then, if I buy a home with the Homepath financing am I still eligible for the $8000 tax credit or not?
@Angela,
To my knowledge, you can use any type of loan to finance your home and not be disqualified due to financing type.
So yes, you can use the HomePath loan and still be eligible.
That said — be sure to check with your accountant first!
Also, here is a helpful site for many questions similar to this one:
http://www.federalhousingtaxcredit.com/2009/index.html
Justin
Fannie Mae’s website states that if you must have at least 35 down, but i have read where is is 3.5%, the same as FHA. Also, if your credit score is less that 660, you must have 20% down for the HomePath program. Do you know anything about this?
Quick question!
What is the reserve requirements on using the HomePath loan. I currently own a rental property which I have had for 5 years and a condo for two years. Do I need cash reserves on all properties and how much?
Thanks for the help!
I have been pre-approved for an FHA loan up to 110M. My credit score is 653 (checked two days ago) my is DTI is 51%. Would I stand a chance at qual. for a HomePath Renovation loan?
If I were to pay cash for a home (foreclosure) would I still qualify for the HomePath?