Have you come across and HomePath property and wonder what the heck that means and if you are eligible? Here is a quick run down of the pros and cons. I recommend you contact a reputable lender to get all the facts, debt ratio and credit score will be the determining factor on whether this program works for you, plus the home has to be a Fannie Mae owned property.
What is a HomePath Property?
•All Fannie Mae REO’s
What are the Advantages?
•HomePath financing is more relaxed
•No Appraisal needed, so no value issues, no repairs required, empty pools ok (make sure to do your due diligence with finding comparable comps since no appraisal is required
•No condo certification required, no need to worry about 50% owner occupancy or 15% greater HOA dues being delinquent ( this is a real advantage since getting a loan for condos is more difficult unless you put 20% down))
•No private mortgage insurance even with less than 20% down
•Fannie Mae promotes the fact that they will give 3.5% down towards buyers costs and prepaids
•No competition with investors as they have to wait 15 days before they can place an offer
•After home is on market for 15 days, Investors can buy with 10% down and no PMI
What are the Disadvantages?
•Interest rates are higher than with conventional or FHA loan
•Closing costs are higher on 3% down but lower costs with 5% down and higher FICO scores
•“As is” condition really means “as is”. Safety and code issues do not apply. You can still get a property inspectionyou just can’t ask for repairs to be done.
Only certain homes are eligible for HomePath financing as your RealtorI can find which homes are available, but first you would have to get an pre-approval from a lender to see if you would qualify.
If you are interested in looking for a home in Fountain Hills or the surrounding communities, call/text me at 480 888 6708 or email me for a quick response to your questions!
Source: Smart Financial Mortgage