On homes owned by Fannie Mae, you may see a note on HomePath mortgages. These loans are strictly available on Fannie Mae homes and offer some helpful financing terms. The benefits of HomePath loans for Waltham, MA homes in this blog may give you a preliminary outline of this program and its offerings.
HomePath Program Options
HomePath financing is offered by approved local mortgage companies, banks, and credit unions. There are two distinct options. The first is HomePath Mortgage, which can be used for properties in livable condition. The second is HomePath Renovation Mortgage for listings needing renovation; it allows home buyers to roll in the expense of repairs.
Both program options may be used on owner-occupied properties, second properties, or investment homes. Down payments may be a minimum of five percent and the money can be a gift, a grant, or even loaned under certain conditions. Mortgage insurance is not mandated, but there might be costs for this feature. Sellers can contribute towards closing fees. Mortgage terms may range and include fixed rates, variable rates, and interest-only.
HomePath Mortgages do not need appraisals. For HomePath Renovation Mortgages, an appraisal is requested to predict what the property could be worth after work is completed. The repair expense lumped into the loan relies on this prediction. The amount can be no higher than $35,000 or 35% of the estimated post-renovation value, whichever is less.
Looking Into HomePath Financing
Many local lenders offer HomePath financing. Be sure to compare this option with other alternatives available. When evaluating fixed rate, variable rate, and interest-only programs, review the advantages and disadvantages of each. Certain mortgage programs may be a better fit than others depending on your specific circumstances and how long you plan to keep the home. It is not mandatory that you select HomePath financing when buying a Fannie Mae property. It is basically an option extended to buyers intended to make buying easier. As with all types of financing, closing expenses and other terms may vary with each lender. The benefits of HomePath loans for Waltham, MA homes above is strictly a summary of the program, may not detail the full financing qualifications, and is subject to change. Contact with a local loan officer for the most current facts.