Fannie Mae owned homes may include a comment regarding HomePath mortgages. This financing is exclusively applicable to Fannie Mae listings and include a few helpful options. The HomePath loan program summary for Florida home buyers in this blog may give you a general understanding of this program and its offerings.
HomePath Mortgage Terms
HomePath financing is offered through select local lenders. There are two different programs. The first is HomePath Mortgage, which can be used for move-in ready homes. The second is HomePath Renovation Mortgage for properties requiring repair; it allows home buyers to roll-in the expense of repairs.
Primary Features of the Program
Both loans may be used to purchase owner-occupied properties, second homes, or investment properties. Down payments may be a minimum of 5% and the funds may be a gift, a grant, and in some cases even loaned. No mortgage insurance is mandated, although there might be a cost for this feature. Sellers contributions towards closing fees are permitted. Loan terms may vary from fixed rate to interest-only and variable rates.
Use of Appraisals
HomePath Mortgages do not require appraisals. For HomePath Renovation Mortgages, an appraisal is requested to predict what the home might be worth once renovated. The repair cost added to the mortgage is calculated from this estimation. The renovation cost can be no greater than $35,000 or 35% of the appraised amount.
Most local lenders are authorized to provide HomePath mortgages. Buyers should compare this option with other options available. When evaluating fixed rate, variable rate, and interest-only options, understand the pros and cons of each. Certain financing options may be a better fit than others based on your personal circumstances and plans. It is not mandatory to use a HomePath mortgage when buying a Fannie Mae listing. It is basically an option that might make buying more affordable. As with any kind of financing, closing expenses and other terms can range from company to company. The HomePath loan program summary for Florida home buyers in this blog is just a summary of the program, does not detail the full program requirements, and is subject to change. Speak with a local loan officer for up-to-date facts.