Homepath, a financing program that was specifically designed for those purchasing Fannie Mae owned homes, has had a slight update within the past week for those using the program and buying as owner occupied buyers.
The change is in regards to the minimum down payment required with this loan product, the new minimum down payment is now 5%, whereas it used to be 3.5%.
Some benefits to using a Homepath Mortgage are:
1. NO MORTGAGE INSURANCE
2. EXPANDED SELLER CONTRIBUTIONS.( Example:You can ask the seller to help pay your closing costs, this is possible with most loans, but the options are greater on Homepath)
3. NO APPRAISAL: You read that correctly. Homepath homes are listed at what the market price should be, if it sells for more that means the marketplace is willing to pay more for that home. You may have heard of appraisal nightmares from friends, well no appraisal here.
4. CONDO BUYERS- Much easier guidelines for condos. If you have a low down payment on other mortgage programs such as FHA, it may be a nightmare trying to find a condo that you can finance.
5. Great Idea??? Maybe. Talk with a lender to find out how using a Homepath Mortgage will affect you and your monthly payments financially. Don’t have a lender? I work with several area lenders and would be more than happy to refer you to them.
Remember, Homepath applies to Fannie Mae owned homes only. Most Fannie Mae owned homes are foreclosures that have been taken back by the bank and get listed as Real Estate Owned(REO) properties.
For more information on Homepath and Homepath Loans, check out the website: