One of the more popular loan programs released this year is the Fannie Mae HomePath Mortgage where the mortgage program is through Fannie Mae directly and is designed to help potential buyers who are interested in buying a home that is currently owned by Fannie Mae. Not only can they get a great deal on a home that has been foreclosed and is owned by Fannie Mae, but now it is possible to get a great deal on the financing for that home as well.
HomePath Mortgage Loan: The “Regular” HomePath Mortgage
The regular HomePath mortgage is designed for people where the home is not in need of repairs — or in other words, the house is pretty much move-in ready. You will often see homes that are eligible for this with the logo seen above somewhere on the sales sheets and information about the HomePath program will usually be in the remarks section of the MLS.
A few of the highlights of the HomePath mortgage include:
- Down payment as low as 3-5%
- Flexile mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- Possible to qualify with less than perfect credit
- Can be used as primary residence, second home or investment property
- No mortgage insurance
- No appraisal fees
- You can have up to 10 financed properties
- No prepayment penalties
HomePath Mortgage Loans: The HomePath Renovation Mortgage
For people who are considering a home that is in need of repairs prior to living in it, the HomePath renovation mortgage is probably the best choice. You will often see homes that are eligible for this program with the above logo on the sales sheets and will usually find more information in the remarks section of the MLS.
HomePath renovation mortgages have these benefits:
- Financing to fund both your purchase and light renovation
- Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
- No mortgage insurance
If you have been to the HomePath.com website or if you have found a house that is owned by Fannie Mae in some other way – be sure to double check to see if the property is eligible for the HomePath Mortgage program, it could save you time and effort on your home financing!
