Fannie Mae HomePath Loan Program – Another great method of financing
With so many types of financing options, not all are discussed by loan officers. Many loan officers don't know much about such programs as USDA, The Fannie Mae HomePath, or My Community. The HomePath program is not known by many and is underutilized. Not only does it allow you to put 3 percent down with no MI, monthly mortgage insurance, but that you can get very good homes at discounted prices.
Highlights of the Home Path Program
- Minimum of 3 percent down
- Down payment can come from borrowers own funds, gift, grant, special loan programs from local or state government, loan from a non-profit, or employer
- No appraisal is required – Property sold ”As Is” – I personally suggest a home inspection
- No monthly mortgage insurance
- Maximum of 6 percent seller help on primary residences. Sometimes Fannie Mae will list a home with a 3.5 percent seller help incentive if closed by a certain date.
- Primary, Second, and Investment homes allowed under this program. Down payment requirements can change.
- Eligible Properties – 1 to 4 unit, PUDs, site condos (low rise condo or building type of detached – Doc #6122) – The property must be designated by Fannie Mae on their web site : HomePath
- Minimum credit score of 660 for 3 percent down. 620 scores allowed if putting 20 percent down or for 2 unit purchases.
- Maximum Loan Amounts – High balance loans allowed based on the Fannie Mae high balance product (Doc#5346)
- HomePath has a renovation program. The property must be designated with a renovation logo on Fannie Mae’s HomePath site to be eligible.
- Title Services – Not required to use Fannie Mae’s title services – Subject to the terms of the contract
Summary – The major highlight of this program is that you can put down as little as 3 percent and have no monthly mortgage insurance. One needs to keep in mind that Fannie Mae doesn’t fix all the properties up, that they are sold “As Is”. And I would recommend getting a home inspection.
One thing that does need to be recognized is that these home prices are not negotiable. The reason being is that Fannie Mae has already discounted these homes, some of which are being sold for much less. The main reason is that these are homes that have foreclosed upon that Fannie Mae is holding on their books, and want to get rid of them as quickly as possible. Lastly, these homes can be found on Fannie Mae’s web site, Fannie Mae HomePath homes
Find a Fannie Mae home now – Click HomePath homes
Realtors can sell Fannie Mae REOs. Become a FNMA approved listing agent – Click here
Realtors Resource page for selling/buying – Click here
Realtors... would love to hear your opinions if you have had a buyer use this program.... and how did commissions work for you? Listing agent? Selling agent?
_____________________________________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
______________________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc
Funny you should blog about this right now...
I'm currently searching for a Georgia lender who does HomePath Renovation Mortgage financing...
Not having any luck... any ideas? Any connections?
Jeff, Another great product....glad to see your article. I think many MLO's don't mention it because they either 1). don't know the process or 2). don't have access to the program. There is absolutely no reason to run from it! Suggested!
Jeff,
Great article, thanks for sharing!
John Gall
FannieMae has a great loan product and is usually very easy to deal with. I have sold many FannieMae homes and find they are among the easiest to deal with.
TAMMY... Ken Cook is in Georgia and a fantastic lender & loan officer. Ken is also here on Active Rain.
DEBORAH.. . thanks... and I have been wanting to highlight this one for a while,but some other topic of importance always comes up...
JOHN... . My pleasure and thanks for stopping by.
JACK... . well, Fannie Mae makes it easy because they want to get rid of these properties, yet the financing makes sense also.... thanks
Jeff, This is very timely. I have had a recent inquiry about finding some of these properties. Can you recommend someone in Virginia (or do you loan in Virginia)? Thanks for posting!
Interesting that you should blog on this topic of HomePath Jeff. I see HomePath frequently because when an agent lists a Fannie Mae property they include specific wording in the MLS that says something about HomePath Financing that is available. You are dead on with it being under utilized or understood by consumers. Most buyers think that they when they see HomePath listed with a Fannie Mae property they have to use HomePath as the lender, which is not true. Buyers still have the option of choosing their lender, HomePath is just one source. I'm bookmarking this for later
Thank you Jeff for a great post! I have steered a few clients toward Homepath since they cannot put down more than 3-5%.
Jeff - An interesting read for sure. I will be looking into this for my customers a bit. Thanks for the post.
Hey Jeff. Its been a while since I read one of your many very good blogs. Thank you very much for sharing this one with us. I am definitely re-blogging this one. Great post.
Jeff, I'm in agreement with you. It is a great product and I wrote a post about it also.
HOLLY... . as I mentioned, we can do loans in VA... hope to help you with your brother when he is ready. And my pleasure... I hope this helps many consumers and realtors that aren't familiar with this program. thanks
MARILYN... . glad some realtors mention the type of financing in the MLS. Leslie Ebersole or someone else, was telling me that it can't be listed on the MLS for the first 2 weeks... then it can. And yes, HomePath is not a lender, but a program... so buyers can choose their own lender and even through HomePath's site, showing some of these lenders.
ANN.. . thanks for stopping by and for the compliment. It works if they are buying a Fannie Mae foreclosed home.
ROBERT & LISA... . my pleasure and I hope it helps with business. As I mentioned to a realtor in another post, even as a realtor, right about it locally, using your town in the title and tags... get some business this way.
LANRE.... . a while? Why have you been waiting? lol Seriously, you can either come here or to The FHA Expert - Not just about FHA loans and this is where I post everything first. And thanks fpr the polite compliment and for reblogging this.. and it's good to see you again. Hopefully we'll meet one day soon...
RAY... .thanks and I will search for your post later tonight. thanks for stopping by. ps.. if I missed anything, if you have anything to add, please don't hesitate. thanks
Beautiful Advantages of the Fannie Mae Home Loan. Buyer's just need a Home Inspection to be sure that they are buying a great home. Find homes that have little or minor fixes so you can have a good deal. Every buyer should take advantage of Fannie Mae programs.
Jeff, another great advantage to the program is that most condos do not require a condo questionnaire - save a lot of time and aggravation.
Does anyone know of the homepath loan officer in Durham/Roxboro, NC area or perhaps Hillsborough, NC? Have friends seeking to by in the area but can't seem to find a reliable lender and one that knows how to stay in touch.
Jeff, I've seen HomePath loans more often lately - seems like a great program that I would like my buyers to investigate. Thanks for describing the program so well.
GREAT post! So informatative - no wonder its featured! Thanks for the info!
I still havent worked with a buyer obtaining a homepath loan but the more I learn about it = it seems like such a viable option for the usual ill fated condo certification issues we have here.
Jeff, this was a great idea to heighten awareness of the HomePath program by writing about it on your blog...congrats on the feature! :)
Jeff- yes when we list any FannieMae foreclosure we put it in the verbage that the consumer sees.
I have closed several of these. They are very easy to handle and a good deal for the client. 3% down with no mortgage insurance is an appealing deal. One thing to look out for is that FNMA a lot of times will not pay for the owner's policy of title insurance. It is a good idea for the buyer to purchase that policy. Thanks for the post.
The Homepath Loan Program is the best and I am not sure why its not more used. When you take out the PMI and allow gift money and lower down payments it sure helps first time home buyers get into a home. Its a shame that there are not more helpful government programs like this.
HomePath financing by FannieMae is one of the best loan programs out there, yet many agents resist using it opting for FHA instead. Thanks for the post; the more agents hear about it the more likely they are to use it.
Very nice post Jeff! Actually, just today I received an email regarding HomePath loans. It said that for a limited time they are also offering "Up to 3.5% Buyer Assistance".
Jeff - Great information that needs to get out to our buyers! Thanks for writing a great post which I am now going to reblog for my clients!
Timely and helpful article. Thanks Jeff!