HomePath renovation loans enable mortgages to be obtained on a home that may otherwise not be approved for financing. The expense of repairs may be added to the mortgage amount, making purchasing the house possible when it otherwise might not be. In this article is an overview of HomePath renovation loans.
Real Estate that Qualify
HomePath loans only apply to Fannie Mae owned properties. Mortgage companies must be authorized to offer this program. There are ordinarily a wide range of mortgage companies. Houses needing light to moderate renovation may also fall under special HomePath renovation loans. This is normally mentioned within the listing details.
Borrowers that Qualify
Other than a home qualifying for HomePath loans, borrowers must also be approved. Approval is usually based on maximum debt to income percentages, minimum credit scores, etc. Contact your lender for detailed information.
Specifics on HomePath Renovation Loans
HomePath renovation loans include some desirable features. Home buyers can submit a down payment as low as 5%. Additionally, down payment funds may be personal, a grant, a gift, or even a loan from specific approved organizations. Fixed and adjustable rate options are available. No mortgage insurance is required, which can save borrowers significant money. Lastly, sellers are permitted to make contributions towards closing costs.
An appraisal is required to assess what the resulting value of the property may be once repairs are done. The principal of the home loan will include the purchase price and cost of renovations. Repair costs can be as high as $35,000 or up to 35% of the appraisal amount.
More On HomePath Loans
If you are looking into purchasing a Fannie Mae home that qualifies for HomePath, you should contact an authorized lender as soon as possible. Your loan officer can provide more specific information on whether you can use the mortgage and what the mortgage figures will be. This will help you determine whether the property will be financially optimal. For further details on this and other related topics, contact Christopher Graves at Sierra Pacific Mortgage Company at 978-376-5389 or firstname.lastname@example.org.