HomePath Mortgage Loans

HomePath Mortgage Loans

Because of the housing market crash, Fannie Mae created a program called the HomePath mortgage loan program. HomePath mortgage loans have helped aid and clear the large amounts of homes that went into foreclosure during the hard times when people were losing their homes. Fannie Mae created this program to drive demand for home buyers to purchase this extra inventory. In addition, because this program was designed to clear the homes in foreclosure, the requirements are very simple. Requirements include a minimal down payment of 5%, no mortgage insurance, and no appraisal. These move-in ready homes can be purchased as either a primary residence or secondary investment properties.

Buying a Foreclosure through HomePath

One of the most trying and irritating obstacles for home buyers attempting to buy a foreclosed home is that most lenders will not approve the loan because either the home will not pass inspection or requires to many repairs. Fannie Mae has an option for these kinds of obstacles. The HomePath program can offer a renovation loan that can cover 97% of the home’s estimated post-repair value.

HomePath Mortgage Loans

Advantages of a HomePath Loan

  • There are many loan options including interest only, conventional, and adjustable rate mortgages
  • Mortgage insurance is not needed
  • No appraisal is needed unless the home is to be renovated
  • Average credit scores can qualify for this program
  • No competition from investors meaning the agent cannot take offers from investors for the first 20 days
  • No home inspection is necessary
  • A low 5% down payment is required which can be paid through a gift, savings, grant, or employer
HomePath Mortgage Loans Program
Is a HomePath Mortgage Right for You?

As described above, there are many advantages to using the Fannie Mae HomePath program, however, for every advantage there may be a disadvantage. Interest rates are typically higher on these foreclosed homes because insurance is not required. If buying a foreclosed home and fixing it up interests you, then the HomePath program can be one of the best options for you. Our Horizon Lending family can help you today to qualify for the HomePath mortgage loan and can get you into the home of your dreams or aid in helping add to your investment properties.

Fanie Mae
 
 
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