What is

HomePath and    

HomePath

Renovation?

If you have been in the house hunting market for any length of time, if you have been looking for bargain homes, foreclosures, etc, or if you are just begining it is very likely you have run across a HomePath home. But what exactly is a HomePath home.

We have all heard of the Fannie Mae and Freddie Mac, these are the two Government Sponsored Enterprises or GSE, in the mortgage business when we are speaking about conventional mortgages these are the guys we are talking about.

A HomePath home is simply a Fannie Mae Foreclosure, but comes with some special financing not otherwise available through conventional financing or any govenrmental mortgage program. Plus, from time to time Fannie Mae will offer special incentives to move thier inventory of foreclosures.

The 2 Types of HomePath Homes

There are two designations for Fannie Mae foreclosures; HomePath and HomePath Renovation. Actually there is a third designation which is both of the designations together, when I describe the two designations you may wonder as I do how they can say a house is both HomePath and HomePath Renovation. The two designations are actually references to two different financing options available for Fannie Mae foreclosures.

One of the special features of Fannie Mae owned properties is that certain homes qualify for HomePath financing. This financing is intended to make it easier for most home buyers to purchase a new home and is only available on Fannie Mae homes.

HomePath Financing

Properties with this logo are eligible for a HomePath mortgage. A HomePath mortgage allows a home buyer to purchase a Fannie Mae owned property with a low down payment, no lender required appraisal and NO MORTGAGE INSURANCE. Expanded seller contributions toward closing costs are allowed and this program is available to both Owner Occupants and Investors.

No lender-requested appraisal
• Low down payment — at least 3 percent can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
• Flexible mortgage terms (fixed-rate, adjustable rate, or interest-only)
• No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
• Expanded seller contributions for closing costs.
• Available for primary residences, second homes and investment properties.
• Many condo project requirements are waived. (keep in mind that getting financing for a condo can be difficult, especially if the condo project doesn't meet the standard guidelines set by Fannie Mae. It will be easier utilizing HomePath financing.
• Minimum Credit Score 620, lower with exceptions

HomePath Renovation

Properties with this logo are eligible for a HomePath Renovation mortgage. HomePath Renovation mortgages allow a home buyer to purchase a property that REGUIRES light to moderate renovation work. The one loan amount includes both the funds for the purchase and renovation work - up to 35% of the As Completed value, no more than $35,000. Available to owner occupants and INVESTORS!

Low down payment — at least 3 percent can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
• Flexible mortgage terms (fixed-rate or adjustable-rate).
• Renovation amount based on appraisal "as completed" value.
• No mortgage insurance; ask your lender for cost details on loans without mortgage insurance.
• Expanded seller contributions for closing costs.
• Available for primary residences, second homes, and investment properties.
• Many condo project requirements are waived;

NOTE: I am not the biggest fan of the HomePath Renovation mortgage but it does serve an important function but if your mortgage will meet the maximum loan amount in your area for an FHA 203k Renovation mortgage and you have an extra 1/2 percent for down payment then the FHA 203k Renovatin mortgage may be a better option. I will walk you through both options and you can decide for yourself. Click here for more information about the FHA 203k Renovation home loan.

Where to Find HomePath Homes

I will tell anyone if they are considering purchasing a new home in the near or foreseeable future that they work with a experienced and reliable real estate agent, they can provide you not only with all the HomePath homes but all listed homes as well.

But, if you want to do your own search visit  http://www.homepath.com/index.html here you can do your own home search and see what is available at this time. Also, there is some additional information about HomePath and a Buyer's Guide that you can download.

I Am a HomePath Lender!

USA Mortgage and I are HomePath lenders with tons of experience helping home buyers every month secure their new home using a HomePath mortgage. I would welcome the opportunity to work with you as well.

Please, feel free to contact me if you have any questions about HomePath, Renovation Mortgages, getting qualified, or anything related to home loans and mortgages. Your calls are welcomed and I expect nothing in return for answering your questions.

HomePath homes are a great option if you are looking to save on down payment, have little money available or you want to keep your money in your pocket, you are concerned about qualifying for a conventional mortgage, looking for a home priced below market value, and for many other reasons.