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Howard Harris Real Estate Expert

Mortgage Rates



Find Out Why Fannie Mae HomePath Financing Has Some Definite Benefits

Aug 03

filed under: Real Estate

First and foremost if you want a HomePath mortgage, you have to purchase a home that is Fannie Mae owned and it must be one of their distressed properties that is currently listed on the market with a Realtor®. That’s the reason for the program in the first place, yes it is promoted as a government-sponsored program that helps increase the availability of home ownership to low and moderate income buyers and I suppose it does do that, but bottom line its an incentive to get these properties sold.

With that said here are some of the benefits that the program includes:

  • 15 and 30 year fixed-rate options as well as 5/1 and 7/1 LIBOR ARM options
  • Primary residences, second homes and investment properties are eligible
  • Up to 97% financing on a primary residence
  • Up to 90% financing on a 2nd home
  • Up to 85% financing on an investment property
  • No appraisal is required
  • No Condo or PUD (planned unit development) warranty required
  • All loans are run through “Desktop Underwriting” with an Approve Eligible
  • Up to 6% seller contributions permitted on primary residence and 2nd home
  • Minimum FICO score of 620
  • Gift Funds can be used for entire down payment in some circumstances
  • No PMI (private mortgage insurance) required

You should also be aware that Fannie Mae will not entertain any offers from investors or 2nd home owners for the first 15 days that the property is on the market. Only owner occupants are permitted to put in an offer during that time period. As with any government sponsored mortgage program there are nuances and fine print details which could prevent you from qualifying for this type of mortgage or give you reason to believe that this program may not be for you.  To find out more about HomePath financing you should speak with a mortgage lender that specializes in these type of loans.

If you would like to receive Fannie Mae listings that are currently on the market in Fountain Hills or anywhere in the Phoenix area I can assist you with that. An earlier blog I posted What Is HomePath Financing – The FHA Alternative  may be of interest to you as well.

Written by Howard Harris