The main benefits to HomePath Mortgages are the waived requirements for mortgage insurance (PMI) and the ability to finance in home repairs. There are not many options for home improvement loans in today's strict lending environment. This home improvement loan may be the answer to buy a fixer upper and turn it into your dream home.
Loan benefits include financing home improvements, No mortgage insurance (no PMI), and a low down payment. Home improvements can include light to moderate home renovations that are included in the financing. The home buyer may only need to cover the low down payment and appraisal costs. This loan option is not available through all banks and mortgage companies.
Because Fannie Mae already owns the property, they allow home buyers to apply for HomePath mortgage financing and include required home repairs into the loan amount. Additionally HomePath Renovation Mortgages do not have PMI which makes the monthly mortgage payments substantially less than standard conventional loans.