If you are touring a Fannie-Mae owned listing, you may notice a note on HomePath mortgages. This program is strictly for Fannie Mae listings and come with many great features. The introduction to HomePath home loans for MA & NH buyers below details a few important facets of the program.
HomePath Program Availability
HomePath home loans are provided through approved local banks, mortgage companies, and credit unions. There are two specific programs. HomePath Mortgage is the first program and may be used for livable properties. The other is HomePath Renovation Mortgage for listings requiring repair; it permits buyers to roll in repair costs.
Benefits to Buyers
Both loans may be used to purchase principal residences, vacation homes, or investment units. Down payments can be a minimum of five percent and the funds can be a gift, a grant, or even loaned under certain conditions. Mortgage insurance is not mandated, although there may be fees for this option. Sellers may make contributions to closing expenses. Financing terms can range and include fixed rates, variable rates, and interest-only.
Appraisal Requirement
Appraisals are not mandated for HomePath Mortgages. For HomePath Renovation Mortgages, an appraisal is requested to estimate the post-renovation value of the property. The renovation expense rolled into the mortgage is based on this prediction. The repair expense can be no greater than $35,000 or 35% of the appraised value.
Other Things to Consider
Most local lenders are authorized to provide HomePath mortgages. Be sure to compare this financing with other alternatives solutions. When considering fixed rate, variable rate, and interest-only programs, review the advantages and disadvantages of each. Certain home loan options may be a better fit than others based on your personal finances and how long you expect to keep the property. Using HomePath financing is not required to buy a Fannie Mae home. It is simply an alternative that may make purchasing more affordable. As with any type of loans, closing costs and other things can range with each company. The introduction to HomePath home loans for MA buyers in this article is only an overview of the program, may not detail all of the specific requirements, and is subject to change. For more information, contact Christopher Graves at Emery Federal Credit Union by phone: 978-376-5389 or email: christopher.d.graves@gmail.com.