Fannie Mae HomePath MortgageA HomePath Mortgage allows a home buyer to buy a home with a low down payment and flexible mortgage terms with no appraisal, no mortgage insurance and even seller paid closing costs. This unique home loan program offers the best of all financing terms for qualified buyers. This conventional loan product is only available one HomePath eligible homes owned by Fannie Mae.

What is a Fannie Mae HomePath Mortgage Loan?

A HomePath Mortgage is a conventional mortgage loan option available through many banks and mortgage companies that allow a home buyer to buy a Fannie Mae owned home with less requirements compared to a standard conventional mortgage. HomePath home loans are only available on foreclosed homes owed by Fannie Mae whom hires local real estate agents to prepare, maintain and market their HomePath homes for sale.

What are the Benefits of HomePath Mortgage Loans?

  • No lender-required appraisal
  • As of November 16, 2013, HomePath loans require at least a 5% down payment that can be funded by your own savings, a gift, a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • Available for primary residences, second homes and investment properties.
  • Flexible mortgage terms (fixed-rate, adjustable rate, or interest-only)
  • No mortgage insurance (PMI).
  • Low mortgage rates.
  • Seller paid closing costs allowed.
  • Many condo project requirements are waived; ask your lender for details.

How do I apply for a HomePath Mortgage?

Home buyers can apply for a HomePath mortgage online or over the phone. The mortgage company must offer HomePath Loans as a home loan option. It is important to note that not all banks and mortgage companies are approved for HomePath Financing.

Or call 1-800-555-2098 to speak with a mortgage loan officer immediately.

How do I know if I am eligible for a HomePath Mortgage?

Just like any mortgage loan, there are several qualifications required to be eligible for a HomePath Mortgage. When you speak with a loan officer for a mortgage preapproval, they will help to review things such as income, credit and assets.

You will be required to document your income to prove you can afford the payments of a new home. Loan officers will determine your debt-to-income ratio (DTI) and make sure it is in an acceptable range for loan approval.

Credit is another important factor in HomePath Mortgage eligibility. Your loan officer will help you to review your credit report and look for things such as on time payments to your current creditors, proof established credit (typically 3 credit accounts with a 12 month history is required), judgments, previous foreclosures,  previous bankruptcies and collection accounts.

Lastly, you will be required to document assets such as bank accounts or retirement accounts to prove that you have enough money saved up for the 5% down payment that is required for financing.  Many times you will be able to get this money gifted to you from a family member or close friend.

While these are the main HomePath Mortgage qualifications and requirements, there are other factors that your loan officer will help you review to determine if you are eligible for a HomePath Mortgage.

What is the down payment for a HomePath Loan?

The minimum required down payment for a HomePath Loan is now 5% of the purchase price. For example, if you are buying a Fannie Mae HomePath Home for $100,000.00 you will be required to have a minimum investment of $5,000.00 of your own funds as a down payment. Prior to November of 2013, Fannie Mae allowed for a 3% down HomePath Loan however this option is no longer available. The 5% down payment can be a gift from a close friend or family member in many cases. Getting a gift for the down payment requires special paperwork and documentation so be sure to review your situation with a loan officer to make sure you meet the down payment requirements for a HomePath Mortgage.

How do I find HomePath Homes for Sale?

There are many options to find HomePath homes for sale in your neighborhood. To get started we recommend getting a home loan preapproval from a reputable mortgage company. Once you are preapproved you will be able to seek the services from a real estate agent in your area that can help you locate Fannie Mae foreclosures for sale.

Once you are preapproved to buy a home, you may start looking online on site such as www.homepath.com. While you can search the internet on your own, a real estate professional has tools such as the Multiple Listing Service (MLS) which provides up to the minute updates of new real estate listings including HomePath eligible homes. A real estate agent can also help you determine if a house already has offers pending or is already sold. Ask your loan officer if they can recommend a good real estate agent to help with your home search.

How do I know if a home is eligible for a HomePath Mortgage?

Homes that are eligible for a HomePath Mortgage will have the HomePath logo displayed on the listing for the home. Not all foreclosed homes are eligible for the benefits of a HomePath Mortgage. The foreclosure must be owned by Fannie Mae and have the HomePath Mortgage logo displayed to apply for this type of financing.

HomePath Mortgage Logo

This is an example of the Fannie Mae logo that you will find on HomePath Mortgage eligible properties.

Does Fannie Mae allow first time home buyers to purchase a HomePath Home before investors?

Fannie Mae believes it is important to allow first time home buyers and those who will occupy the home as their primary residence an opportunity to buy the home before investors. There is a 15 day period where investors are not allowed to bid on HomePath Homes.  This allows those who will live in the home an opportunity to buy a HomePath Home easier and without the added pressure of real estate investor bids.

Are there different types of HomePath Financing?

There are two types of HomePath Mortgage loan options which are the standard HomePath Mortgage and the HomePath Renovation Mortgage.  It is important to note what type of loan the Fannie Mae owned home can be purchased with. If the home is in good condition, typically Fannie Mae will allow the standard HomePath Mortgage loan. If the home does not meet conventional financing guidelines based on Fannie Mae’s internal appraisal and property condition report, they may allow for the HomePath Renovation Mortgage.

HomePath Renovation Mortgage Financing

homepath renovation mortgage

This logo is an example of homes that are eligible for HomePath Renovation Mortgages.

HomePath Renovation Mortgage Financing has many of the same benefits of the standard HomePath mortgage however it allows for money to be financed in an escrow account for future repairs. The renovation home loan option has additional requirements for approval and is not offered by many lenders. A home buyer using renovation financing can finance in home improvement costs up to $35,000 or up to 35% of the home’s completion value.

  • One time close home improvement loan
  • As of November 16, 2013, HomePath loans require at least a 5% down payment that can be funded by your own savings, a gift, a grant; or a loan from a non-profit organization, state or local government, or employer.
  • Available for primary residences, second homes and investment properties.
  • Flexible mortgage terms (fixed-rate and adjustable rate loan options)
  • No mortgage insurance (PMI).
  • Low mortgage rates.
  • Seller paid closing costs allowed.
  • Many condo project requirements are waived; ask your lender for details.

Where can I get more information on the Fannie Mae HomePath Mortgage?

If you are looking for more information on a HomePath Mortgage and HomePath homes for sale then you are doing the right thing. It is important to do your research and understand how the home buying process works prior to putting an offer on a property for sale.  The internet is a great tool to begin your research, however it is important to note that not all information online can be deemed reliable. You may also wish to speak with a housing counselor in your area to give you free advice on the risks and benefits of owning your own home.

We recommend researching neighborhoods, schools, prices of comparable homes for sale, shopping and other important information about areas of interest. Your real estate agent and mortgage loan officer will also be great tools to assist you with these crucial questions before you buy your home.

For more information on HomePath Mortgage loans call a licensed mortgage loan officer today at 1-800-555-2098 or inquire below.

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