Are you a prospective homebuyer looking for the most bang for your buck? A HomePath mortgage loan may be right for you.
The HomePath mortgage program offers prospective home buyers and investors reasonably priced properties with flexible mortgage terms and no mortgage insurance. The HomePath mortgage loan is administered through Fannie Mae on their Real Estate Owned (REO) dwellings, properties owned by the lender due foreclosure actions.
The number of REOs has risen steadily over the past few years. As a result, there are more and more homes reverting to the lender. Subsequently, lenders are increasingly interested in selling these properties as quickly as possible and offer special mortgages to do so.
Fannie Mae’s HomePath program offers traditional HomePath Mortgages and HomePath Renovation Mortgage loans for homes in need of light repair.
Listed below are the characteristics of the traditional HomePath Mortgage loan:
- No mortgage insurance
- No appraisal required
- Minimum of 3 percent down for primary residences, 10 percent down for investment properties
- Seller contributions can be 6 to 9 percent on primary residences, averaging $5,000, to assist with closing costs
- Minimum credit score of 580mrequired
- Borrower can finance up to ten properties
- Not subject to FHA type property conformity issues.
The HomePath Renovation Mortgage Loan is offered by three lenders nationwide and allow for renovations to the property to be included in the loan. The following stipulations apply:
- An appraisal must be performed upon completion of the renovation.
- The loan must close within a specified amount of time (typically 30 days) after a licensed contractor completes the repairs.
- Adherence to bid and inspection guidelines
Currently, there are dozens of homes in Lackawanna and Luzerne counties eligible for this financing. To view these homes visit: http://www.homepath.com/