This is Fannie Mae’s exclusive program allowing the homebuyer to purchase Fannie Mae’s foreclosed home. The buyer will pay as less as 3 percent of the down payment. One of the benefits of the program is its ability to put 3 percent as down payment and you still avoid paying the mortgage insurance.
Benefits of homepath loans
No mortgage insurance
Seller contribution of a maximum of 6 percent purchase price
No appraisal necessary
3 percent down payment
Investment properties, owner occupied and second homes allowed
It is not necessary for you to have an appraisal because the property is already owned by Fannie Mae. They will be holding the new buyer’s loan and also set their own rules. Not paying appraisal means you will not pat with $400 charged for the service. Some people argue that this only serves to put you on the disadvantage as there is not independent third party opinion of your intended home purchase value.
Most loans need mortgage insurance. This is particularly if you are putting like 20% or less. The insurance covers the lenders but not the homebuyer. This kind of break enables you to save more as you will not be liable to pay the monthly insurance premiums.
Down payment of 3 percent is a great offer. Actually, homepath loans have the least down payment requirements for owner occupied property in the market today. The FHA loans requires the buyer to pay 3.5 p0ercent minimum as down payment and the traditional conforming loans need 5 percent at least.
The contributions of the seller are also great with homepath loans. For instance, Fannie Mae gives you like 6 percent concession for the closing cost. This money can be used in paying for third party fees so that the homebuyer can solely use their finances for down payment.
If you have second home or even investment properties, then you will also find homepath loans very reliable. Moreover if you are buying a primary residence, rental property or second home, then this will suit you well. These down payment requirements vary significantly depending on occupancy. However, these requirements are not very stringent like many conventional financing for occupancy types.
Getting a good homepath mortgage is something that will give you a lot of relief. This will help lessen the financial burden imposed and make sure that you are doing well and not straining in terms of income and finances. A good mortgage is one that leaves you with good breathing space to enable you take care of your other pressing concerns as well. This is why it is very important that you know how to choose the best mortgage. A good choice like homepath loans is what you need.
Lastly, it is very important that you know that not every lender will offer you homepath loans. Make sure that you ask well in advance for a certified up front mortgage broker approved by Fannie Mae. They will be able to close well the homepath mortgage loans.