I am often asked what is HomePath? The HomePath sign is appearing in the windows of homes or on for sale signs but many people don’t know what this is. HomePath is financing offered by Fannie Mae as a home renovation loan and is available on Fannie Mae foreclosures. It is not the same as an FHA 203K loan.Why is HomePath often a better option than standard financing?
- Investors can use this type of financing and need only 10% down
- Mortgage terms are fairly flexible and the down payment is low
- There is no mortgage insurance
- Your down payment of at least 3% can come from a variety of sources such as your savings, as a gift or as a loan from a non profit, the government or other various sources
What are some of the benefits?
- You can have multiple HomePath loans
- No minimum amount of renovation work is required
- Helps purchase unfinished new construction foreclosures
- You can finance up to $417,000
- Home can be renovated before you move in
- Items such as pools and saunas can be included
- No appraisal is needed to get a HomePath loan
This is just a brief summary of HomePath financing, for more details please check with your lender.