The HomePath mortgage program is available to buyers that are looking at Fannie Mae owned properties. It is a special financing program to provide an alternative to FHA and other conventional loans on special Fannie Mae properties. This loan is available to homes designated as HomePath financing eligible on the www.homepath.com website.
The property can be a single family home, a 2-4 unit property, a townhome or a condominium. You only need 3% down if you are going to occupy the property. If it is an investment property, you need to have 10% down. If you need a non-occupant co-borrower, you must put a minimum of 5% down. The mortgage is a 30 yr fixed rate program.
A couple of benefits to the program are that private mortgage insurance is not required and that can save you thousands of dollars over the life of the loan. You are also not required to have an appraisal done. The price of the home is the value of the home for the purpose of the transaction. The seller is allowed to pay up to 6% of the sales price towards closing costs.
Condos do not have to be reviewed for project eligibility. The down payment can come from a gift. Grants from a borrower's employer, a public agency or nonprofit organization can also be used for the down payment.
If the property you are looking at is eligible for HomePath financing, you will need to talk to a lender that is approved for the program. It could make it much easier to purchase a home that qualifies and save you money every month!
Leslie Vanderwerf, NMLS ID#335509, Advisors Mortgage - Email – Website
