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 2^nd Home and Investment properties!

D. Jed Wunderli
Certified Mortgage Planner
Alterra Home Loans
702-812-1214