HomePath renovation mortgages enable people to purchase properties that require work. The cost of repairs can be added to the loan amount, making the purchase possible when it otherwise might not be. The following is an overview of HomePath renovation mortgages.
Real Estate that Qualify
HomePath mortgages strictly apply to properties owned by Fannie Mae. There are normally a wide range of lenders approved to offer HomePath mortgages. Houses needing light to moderate repairs can also qualify for special HomePath renovation mortgages. This is often noted within the listing details.
In addition to a property being qualified for HomePath mortgages, home buyers must also qualify. Criteria usually includes particular debt to income percentages, minimum credit scores, etc. Speak with your loan officer for detailed information.
Benefits of HomePath Renovation Mortgages
HomePath renovation mortgages offer some desirable terms. Home buyers may have a down payment as low as 5%. Additionally, down payment funds can be personal, a grant, a gift, or even loaned from specific approved organizations. Both adjustable and fixed interest rate mortgages are available. No mortgage insurance is charged, which will save borrowers significant cost. Lastly, seller contributions are also possible.
An appraisal is perfoemd to determine what the value of the property will be once work is final. The amount of the loan will be based on the purchase price plus cost of the work to be completed. Repair costs can be up to $35,000 or up to 35% of the appraisal amount.
Additional Resources for HomePath Mortgages
If you are considering purchasing a Fannie Mae house that qualifies for HomePath, you should contact an authorized lender as soon as possible. Your lender can furnish more detailed information on whether you qualify for the mortgage and what the specific costs will be. This information will help you determine whether the listing will be a good fit for you financially. For additional information on this and other similar programs, contact Customer Service at Accurate Title at 800-639-4405 or firstname.lastname@example.org.