What is a Homepath loan?
Homepath is a mortgage offered by Fannie Mae, specifically geared for, and only offered Fannie Mae owned properties.
What are the benefits of Homepath financing?
Because Fannie Mae is motivated to reduce its own inventory, these loans offer more aggressive financing terms, and have a number of benefits, including:
- Low down payment. Homepath loans require as little as 3% down.
- No mortgage insurance. Unlike most conventional and FHA mortgages, Homepath loans do not require the borrower to pay monthly mortgage insurance. This can mean a lower overall payment.
- No appraisal required. Because Fannie Mae already owns the home, they do not require an appraisal.
- Lower credit score requirement. Homepath loans generally require a lower minimum FICO than traditional mortgages.
- “First look” period for primary residents. Borrowers looking for a primary residence and offering on a Fannie Mae owned, Homepath qualified home, are given priority over non-owner occupied purchasers for period of time.
- Ability to finance repairs. Some homes qualify for the Homepath Renovation Loan, which allows the borrower to finance repairs into the mortgage.
- Reduced down payment for investors. Most investor loans require at least 20% down. After the “first look” period, investors can purchase with a Homepath loan for as little as 10% down.
How do I qualify?
Qualification is similar to other types of home financing. The lender will look at your credit scores, and history, debt-to-income ratios, and employment stability. The best way to find out if you qualify is to talk to a lender. All Western Mortgage offers Homepath financing. We would be happy to answer any questions you may have or pre-qualify you. Contact us today 702-277-4141 or fill out our “Ask a Mortgage Expert” quick contact form.