Fannie Mae owned real estate listings may include a remark about HomePath mortgages. This financing is strictly applicable to Fannie Mae homes and come with some unique terms. The introduction to HomePath financing for Prospect CT home buyers below may provide you with a preliminary outline of this financing and its benefits.
HomePath Financing Specifics
HomePath home loans are offered through select local lenders. There are two types of programs. HomePath Mortgage is the first one and applies to move-in ready homes. For listings needing renovation, buyers can roll in repair costs with HomePath Renovation Mortgage.
Benefits to Home Buyers
Both loans can be used on principal homes, second properties, or investment units. Down payments can be a minimum of 5% and the funds may be a gift, a grant, and in some cases even loaned. MI is not mandated, but there may be a cost for this option. Sellers concessions are allowed. Mortgage terms can range from fixed rate to interest-only and variable rates.
Use of Appraisals
Appraisals are not required for HomePath Mortgages. For HomePath Renovation Mortgages, an appraisal is requested to determine what the home could be worth once work is completed. The repair cost lumped into the loan amount relies on this estimation. The rolled in amount must be no more than $35,000 or 35% of the appraised amount, whichever is less.
Other Things to Consider
Many local lenders are authorized to assist with HomePath mortgages. Be sure to compare this program to other programs available. When considering fixed rate, variable rate, and interest-only programs, take the time to learn about the advantages and disadvantages of each. Some mortgage options may work better than others based on your specific finances and plans. It is not mandatory to use a HomePath loan to buy a Fannie Mae property. It is basically an option that might make buying more affordable. As with all types of financing, closing costs and other things may range from company to company. The introduction to HomePath financing for Prospect CT home buyers above is merely a summary of the program, does not detail all of the exact requirements, and is subject to change. Speak with a local lender for current facts.