Fannie Mae owned foreclosed homes have some very attractive financing. They want to sell the properties because they would rather have the cash instead of the properties and therefore have them priced very competitively. The Home Path Program has been out for some time but not many home buyers and/or brokers know the details. Here are the basic guidelines and benefits of the Home Path Program.
ü All borrowers must have a credit score and either be a US citizen or a Green Card holder
ü Buyers may not have more than 4 financed properties
ü Manufactured homes are eligible. Condos and PUD’ are acceptable subject to underwriting review
ü Flexibility to use conventional agency and high loan limits
ü Co-borrowers/co-signers allowed. Please note if they will not be occupying the property then the LTV drops to 90%
ü Home Path financing will allow the buyer to purchase a Fannie Mae owned property with NO PMI up to 97% financing
ü 15 and 30 year fixed rates are available and standard Fannie Mae guidelines apply
ü NO APPRAISAL NECESSARY
ü Contributions are allowed as follows:
6% of the sale price for any LTV greater than 75%
9% of the sales price for any LTV less than 75%
6% on all second homes
2% on all investment properties
ü Contributions can be applied to closing costs including prepaids
ü Home Path offers mortgage job loss protection. This free program will pay a borrowers mortgage payment up to two years in the event of layoffs, involuntary unemployment or job loss
ü If buyers closing costs are under the 3.5% figure, then the buyer will not have access to the remaining balance
ü For loan to value offer 80% the credit score must be 660 or higher. For LTVs lower than 80% the minimum credit score must be 620
ü NO COSTLY MORTGAGE INSURANCE
If you would like to take advantage of the Home Path Program please contact me to see if you qualify.
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