HomePath renovation home loans enable mortgages to be obtained on a property that otherwise may not be approved for financing. The expense of renovations may be rolled into the mortgage principal, making the purchase more affordable. The following is useful information on HomePath renovation home loans.
Qualified Listings
HomePath home loans strictly apply to homes owned by Fannie Mae. Lenders must be authorized to provide HomePath home loans. There are normally a variety of lenders that will offer this type of loan. Homes needing minor to moderate renovation may also fall under special HomePath renovation home loans. This is often included in the listing details.
Who Can Use HomePath Home Loans
In addition to the listing being eligible for HomePath home loans, home buyers must also meet certain guidelines. Qualification requirements may differ by mortgage company but usually involves income and FICO score criteria. Speak with your loan officer for information on this.
Specifics on HomePath Renovation Home Loans
HomePath renovation home loans include some helpful terms. Home buyers may submit a down payment as low as 5%. Furthermore, the down payment can be personal funds, a grant, a gift, or even loaned from specific approved entities. Fixed and variable interest rate options are available. Another money saving feature is that no mortgage insurance is included. Lastly, it is acceptable for sellers to make concessions towards closing fees.
An appraisal is required to guestimate what the final value of the real estate may be once renovations are done. The principal of the loan will be based on the purchase price plus expense for renovations. Repair costs can be up to $35,000 or up to 35% of the value of the property once renovated.
More On HomePath Home Loans
When thinking of buying a Fannie Mae listing that qualifies for HomePath financing, you should contact an approved lender beforehand. Your lender can give more comprehensive information on whether you qualify for the loan and what the mortgage terms will be. This will help you determine whether the listing will be a good fit for you financially. For more details on this and other related topics, contact Sonny Solomon at The Keyes Company at 561-247-1047 or sonny@sonnysolomon.com.
