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 What is HomePath Financing?
HomePath Financing is a home loan program specifically for Fannie Mae-owned properties. It was designed by Fannie Mae to help shed some if it's foreclosed properties. The program offers fixed rate mortgages up to 97% of the purchase price with no mortgage insurance and no appraisal fees. The program can be used for 2nd home and investment properties as well.
How do you know if a property qualifies for HomePath financing? Most likely you saw a sign or flyer on a specific property you are interested in. If you want to view all the eligible properties, you can visit www.homepath.com. Just enter in a city and state or a zip code to see what's available in a specific area.
The benefits include:
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
- You may qualify even if your credit is less than perfect.
- Available to both owner occupiers and investors.
- 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.
- No mortgage insurance.
- No appraisal fees.
Fannie Mae requires a lender's prequalification statement before negotiating a home purchase offer.
Fannie Mae wants to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.
You can get prequalified in a matter of minutes by calling Bill Evans @ 479-530-4569. He will provide a pre-qualification letter to your real estate professional to accompany your offer to Fannie Mae. He works evenings and weekends to accomodate you and your REALTOR.
A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted. This process will be painless as you will have already provided Bill Evans with most of your information.
Here's a quick matrix for HomePath financing.
Primary Residence:
- 95% loan with a 660 FICO on 1 unit properties
- 97% flex option on 1 unit properties with a 660 FICO
- 80% loan on 1&2 unit properties with a 620 FICO
- 75% loan on 3 to 4 unit properties
- Up to 6% seller concessions allowed for closing costs.
Second Homes:
- 90% loan with a 660 FICO
- 80% loan with a 620 FICO
Investment Purchase:
- 85% loan with a 660 FICO on a 1 unit property
- 80% loan with a 620 FICO on a 1 unit property
- 75% loan with a 620 FICO on a 2-4 unit property
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