If you’re in the market to purchase a home, particularly as a first-time homebuyer, the HomePath program offered through Fannie Mae is a great financing option.
Because of the high number of foreclosures in recent years, Fannie Mae has accumulated a significant number of bank owned properties. The HomePath program exists to help clear this inventory by offering attractive financing terms to buyers that purchase a HomePath home.
Though HomePath is available to existing homeowners, it is a particularly great financing option for first-time homebuyers for several reasons:
- Low down payment – Just a minimum of 3% down is needed, and it can be funded by your own savings, a gift, grant, state or local government, employer, or a secured loan from a nonprofit organization.
- No mortgage insurance – Typically when you finance over 80% of the purchase price of a home, you must get mortgage insurance, which can potentially add hundreds of dollars to your mortgage payment. HomePath does not require mortgage insurance*.
- No appraisal - HomePath financing does not require an appraisal, simplifying the loan process and keeping more money in your pocket.
- Non-occupant coborrowers are allowed – HomePath also allows for non-occupant coborrowers, which are essentially cosigners that do not intend to live in the house.
- Modest credit requirements – Low to mid 600-range credit scores and above, depending on loan-to-value (LTV) and loan size.
HomePath financing is available for primary homes, second homes, and investment properties, but the “catch” is that the financing is offered only on HomePath properties owned by Fannie Mae. However, there are plenty of homes available on the HomePath website.
If you currently own a home, you can take advantage of HomePath financing as well, but it’s important to note that Fannie Mae does not take offers contingent on the sale of your current home.
Note that all offers for HomePath properties must be made through a real estate agent. If you aren’t currently working with a real estate agent, let me know! We have a large network of great agents we’ve worked with in the past and I would be happy recommend a few to you.
For more information on HomePath, check out the HomePath Buyer’s Guide on the Fannie Mae website. The mortgage industry is constantly changing, so be sure to check the Fannie Mae website or consult with a mortgage or real estate professional for current program availability and guidelines.
Want to find out more? Give me a call!
We can help you turn the home of your dreams into reality! Whether you’re buying your first home, second home, vacation property, or an investment property, we have the home loan solutions that can make your home ownership dreams a reality. Our world class team of professionals will work closely with your real estate agent to guide you through the complexities of the home buying process.
* Cost adjustments may apply, check with your mortgage professional for more information.
** Note that we are not currently offering HomePath financing. This is for informational purposes only.