HomePath mortgages for renovations enable loans to be obtained on a house that may otherwise not qualify for financing. The cost of renovations can be rolled into the mortgage amount, making purchasing the property possible. Below is some helpful information on HomePath mortgages for renovations.
Real Estate that Qualify
HomePath mortgages only apply to Fannie Mae owned homes. Lenders must be approved to provide HomePath mortgages. There are usually a wide range of mortgage companies that can offer this type of loan. Homes needing minor to moderate work can also meet requirements for special HomePath mortgages for renovations. This is often noted in the listing details.
Other than a listing qualifying for HomePath mortgages, home buyers must also qualify. Approval is often based on specific debt to income ratios, minimum credit scores, etc. Contact your loan officer for details.
Specifics on HomePath Mortgages For Renovations
HomePath mortgages for renovations come with some desirable terms. Home buyers can submit a down payment as low as 5%. Furthermore, the down payment may be personal, a gift, a grant, or even a loan from specific approved organizations. Fixed and adjustable rate options are available. No mortgage insurance is necessary, which will save borrowers on monthly expenses. Lastly, it is acceptable for sellers to make contributions towards closing fees.
An appraisal is completed to estimate what the resulting value of the property will be once repairs are done. The amount of the mortgage will be based on the purchase price plus cost of repairs. Renovation expenses can be as high as $35,000 or 35% of the final value.
Additional Information on HomePath Mortgages
When looking into purchasing a Fannie Mae listing that qualifies for HomePath, you should contact an approved lender beforehand. Your lender will give more specific information on whether you can use the mortgage and what the loan costs would be. This information will help you determine if the home will be a good fit for you financially. For additional details on this and other similar topics, contact Pedro Teixeira at FIT Credit at 215-613-8130 or firstname.lastname@example.org.