10% Down Investor Loans – HomePath Mortgages on Fannie Mae Foreclosures

10% Down Investor Loans – HomePath Mortgages on Fannie Mae Foreclosures

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Purchase Loans – HomePath® Mortgage Financing

This special financing is available on Fannie Mae homes with the following logo:

The benefits include:

  • Bad Credit OK
  • Minimum 3% down for primary residence, 10% down investment property
  • Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
  • NO APPRAISAL NEEDED
  • NO MORTGAGE INSURANCE
  • High balance (jumbo) and interest only products also available
  • Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
  • This loan does price with a higher rate than your average 30 year fixed conforming loan.  If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points.  Keep in mind, much of this can be covered by the seller and there is no mortgage insurance.  Of course one can just opt for the higher rate in lieu of the discount points.
  • Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing – no problem)

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Rehab Loans – HomePath® Renovation Mortgage Financing

This special financing is available on Fannie Mae homes with the following logo:

The HomePath Renovation Mortgage is currently only offered by 3 lenders nationwide.  This will allow for light renovations to the property that can be included into the loan.  Information about this specific product is scarce.  In general, renovation loans work as follows:

  • Available only on owner-occupied residences
  • An appraisal is done “subject to” the completion of the repairs (based on ARV).  The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower.   The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
  • Financing to fund both your purchase and light renovation
  • Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
  • Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
  • No mortgage insurance*
  • The loan closes and the repairs are completed by a licensed contractor within a specified amount of timeFannie Mae Foreclosure Homepath Financing
  • There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc.
  • The interest rate is typically higher than your general conforming 30 year fixed
  • HomePath Renovation Mortgage financing is available from several lenders (down to 3 now)

Personally, I use Scott Fifer for my HomePath and FHA loans.    He’s also one of the very few lenders that offers Homepath Renovation mortgage financing.  His info is below:

Scott R. Fifer
Sales Manager
Colonial National Mortgage
Office: 972-221-2581 ext 17
Fax:    972-434-3314
Cell:    214-952-7264
www.cnmcs.com/scottfifer

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Click here to find Fannie Mae foreclosures that can be financed with HomePath Mortgages.

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