Using a HomePath loan to Purchase a Home

The HomePath loan program was created to allow Fannie Mae, the government sponsored entity that purchases mortgage loans from major lenders, to sell homes that are in a distressed condition to consumers without having to have an appraisal done.  Not all HomePath eligible homes are distressed but most that we have seen would have difficulty passing the health and safety requirements of a conventional or government appraisal.

The HomePath loan is an excellent loan that traditionally closes faster than other loans because there is no appraisal required.  Additionally, there is no mortgage insurance required on HomePath loans.

Highlights:

• Down Payment and Closing Costs.

• Maximum loan amount is $417,000.00.
• The minimum down payment is 3% of Sales Price.
• Gift funds can be used for down payment and closing costs allowed if consumer is putting at least 5% down.
• Seller can credit up to 6% of sales price towards buyers costs.

• Credit Qualifying Guidelines such as:

• Minimum credit score of 620.*
• No appraisal required.
• No mortgage insurance required.
• Available for primary residences and investment properties.

*Restrictions apply.