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Tuesday, January 3, 2012

HomePath Quick Reference Guide

This is the 5th installment of the Loan Program Quick Reference Guide and today I am focusing on the HomePath loan.  Monday I gave you the rundown on the standard FHA loan.  Tuesday it was the VA.  Wednesday I highlighted conventional loans and yesterday the spotlight was on the FHA 203(k) Streamline loan.  The HomePath is a good loan but it is very limited since it can only be used on FNMA-owned homes that are designated for the HomePath.  Here are the highlights:
HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.

Benefits to Buyer
·       Low down payment and flexible mortgage terms (fixed–rate, adjustable rate, or interest–only-Primary Residence).
·       Down payment (at least 3 percent) can be funded by the borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
·       No lender-requested appraisal.
·       No mortgage insurance.
·       Expanded seller contributions for closing costs allowed.
·       Many condo project requirements are waived.
·       10% down payment requirement for 2nd Home and Investment properties!

D. Jed Wunderli
Certified Mortgage Planner
Alterra Home Loans

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