HomePath Financing

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HomePath financing is a special loan available for certain Fannie Mae owned properties.  This loan makes purchasing foreclosed properties more appealing to buyers because of the special guidelines created by Fannie Mae. The benefits included when choosing to go through HomePath financing consist of low down payments, no lender appraisal is needed and mortgage insurance is not required.  A property will either state HomePath Mortgage or HomePath Mortgage Renovation.  The financing guidelines for both are the same, but the renovation mortgage allows up to $35,000 for any repairs that the property might need.  The repair amount gets added onto the loan, so there will only be one payment.   The ability to add any repairs onto the loan makes it easier for a buyer to purchase a home that might not have been a possibility if it were not for the HomePath Renovation Mortgage.When a buyer is preparing to purchase a home, saving for the down payment can be harder than keeping a good FICO score.  Two of the most commonly used loans are FHA and conventional.  An FHA loan requires a 3.5% down payment of the purchase price, while a conventional loan for an investment property requires a 20% down payment of the purchase price.  When HomePath financing is used, the required down payment is 3% and 10% for investment properties or second homes.  The low down payment, particularly for investors is very appealing since only half of what is normally required will be needed to purchase a home.  A lender required appraisal is needed for just about all loans.  An appraisal in Yuma, AZ runs for about $450 and is paid for by the buyer.  The appraisal is used by the bank to be reassured that they are lending money for a property that is worth the sales prices.  If the appraisal were to come out lower or higher than the sales prices, problems could arise.  There have been instances where the bank will not lend out the money if the appraisal comes out lower.  A buyer not only loses that transaction, but also time and any other properties that were sold during the time elapsed in that particular transaction.  HomePath financing does not require an appraisal, so not only does the buyer save $450, but the buyer is also assured that the transaction will not be delayed by any appraisal issues.  Finally, HopePath financing does not require for a buyer to pay mortgage insurance.  Most all loans require a buyer pay mortgage insurance until at least 20% of the loan has been paid.  The savings on a buyer’s monthly payment will vary, but depending on the loan it could be a savings of $75 for a $100,000 loan.  HomePath financing can save a buyer money throughout the entire transaction.  To make HomePath even more appealing, the guidelines for HomePath eligible homes gives owner occupant buyers a 15 day window from when the home was listed to not have to compete with any investors and only owner occupant buyers can make offers on these homes during this time.HomePath financing may be right for you.  A HomePath financing eligible home will have HomePath signage or you can ask your Realtor if the property that you are interested in is eligible.  A minimum FICO score of 660 is required to qualify, but for more details talk to your loan officer today and ask if they offer HomePath financing. 
Giselle Caudillogiselle@palaciosrealty.net