Understanding Fannie Mae HomePath Mortgages

Posted by Mary Ray on Sunday, August 7th, 2011 at 12:38pm.

Understanding Fannie Mae HomePath Mortgages 

Whether you are looking to purchase your first Cape Coral property, or interested in investing in a vacation home, there are two loans that are getting a lot of attention right now. These are the HomePath Mortgages currently being offered through Fannie Mae. Specifically, there are two types of loans available, the HomePath Mortgage and the HomePath Renovation Mortgage. Here's the breakdown on these two loans and how you can qualify and benefit from them.

HomePath Mortgage Loan

The HomePath Mortgage is designed to help potential home buyers purchase a Fannie Mae owned property by providing Cape Coral home buyers with the following pretty attractive benefits:

·         A low down payment and the option of fixed, adjustable, or interest only mortgage terms.

·         The ability to qualify with less than perfect credit. Borrowers with a credit score as low as 580 qualify for the program, but only at 80% of the loan. The higher your credit score, the more of the loan value you will be eligible for. 660 is the score necessary for 95-97% loan-to-value.

·         The loan is available to investors as well as owner, occupiers. This is excellent, since no one is left out, not even those wishing to purchase a second home.

·         No need for mortgage insurance. This is quite an attractive feature of the loan.

·         Expanded seller contributions to cover closing costs. This program allows up to 6% of the purchase price to be given by the seller towards the closing costs. This can prove to be a huge benefit for those who need that extra help to get into a home.

·         No lender requested appraisal necessary.

What Do We Think About The HomePath Mortgage?

Basically, this program is a complete win for potential buyers of Cape Coral property. The HomePath program requires very little down, low monthly payments, and eliminates those potential deal killers, which are appraisals and closing costs. 

The HomePath Renovation Mortgage

The HomePath Renovation Mortgage has most of the same benefits and qualifications (such as a minimum credit score), but this loan is specifically created for homes in need of light to moderate renovations. This loan provides the funds for the purchase of the home along with the amount necessary for the renovation. The renovation amount is based on appraisal 'as completed' value.

All of the other stipulations are the same, no mortgage insurance, low down payment, and available to investors and those looking to purchase the property as a first or second home.

There are some specifics you'll want to be aware of about the renovation allowance and details. If you are interested in a Fannie Mae owned Cape Coral property, please give our office a call. Our qualified staff will be happy to answer your questions and take you every step of the way. We will help you locate a HomePath Renovation Mortgage lender or a HomePath Mortgage lender, depending on your needs.

For more information, available directly from the government website, you can visit the HomePath Mortgage page. There's no time like now to take advantage of Fannie Mae's large inventory of homes along with this excellent program to help potential home buyers.

By David Sporleder | Sporleder-Ray Realty Group | david@davidsporleder.com| Google+

 

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