If you are seeing a Fannie-Mae owned property, you may see a notation about HomePath mortgages. These loans are exclusively for Fannie Mae listings and come with a few unique financing terms. The benefits of HomePath loans for PA properties below details the most key features of the program.
HomePath Mortgage Terms
HomePath financing is provided through approved local lenders. There are two different programs. The first is HomePath Mortgage, which may be used for livable properties. The other is HomePath Renovation Mortgage for listings needing rehab; it allows borrowers to roll in repair costs.
Primary Features of the Program
Both HomePath Mortgage and HomePath Renovation Mortgage can be used on principal residences, vacation properties, or investment units. Down payments may be as low as five percent and the money may be gifted, a grant, and in some cases even loaned. MI is not mandated, but there might be fees associated with this option. Sellers may make concessions. Financing terms may vary and include fixed rates, variable rates, and interest-only.
Use of Appraisals
Appraisals are not required for HomePath Mortgages. For HomePath Renovation Mortgages, an appraisal is performed to determine what the home may be worth once work is finished. The renovation cost rolled into the mortgage relies on this estimation. The rolled in amount must be no greater than $35,000 or 35% of the estimated future value.
Other Considerations
Most local lenders are able to assist with HomePath mortgages. Buyers should compare this option with other financing available. When considering fixed rate, variable rate, and interest-only programs, look into the pros and cons of each. Some loan options may work better than others based on your circumstances and how long you intend to keep the property. It is not mandatory that you use HomePath financing to buy a Fannie Mae home. It is simply an alternative extended to buyers to possibly make purchasing easier. As with all types of loans, closing costs and other things can vary with each lender. The benefits of HomePath loans for PA properties in this article is merely a summary of the program, may not include the full financing requirements, and is subject to change. Speak with a local mortgage company for up-to-date facts.