HomePath mortgages for renovations allow for mortgages to be issued on a home that may otherwise not be approved for financing. The cost of renovations can be added to the mortgage principal, making buying the house more affordable. In this article is an overview of HomePath mortgages for renovations.
Qualified Real Estate
In general, HomePath mortgages strictly apply to Fannie Mae owned homes. Mortgage companies must be approved to offer this type of finanincing. There are ordinarily a long list of lenders. Houses needing light to moderate work can also meet requirements for special HomePath mortgages for renovations. This is usually mentioned right in the listing disclosures.
Other than a home being qualified for HomePath mortgages, home buyers must also be approved. Approval is often based on maximum debt to income percentages, minimum credit scores, etc. Speak with a loan officer for detailed information.
Features of HomePath Mortgages For Renovations
HomePath mortgages for renovations provide some helpful features. Buyers can put as little as 5% down. More importantly, down payment funds may be personal funds, a gift, a grant, or even a loan from specific approved entities. Fixed and variable rate alternatives are available. Another money saving feature is that no mortgage insurance is necessary. Lastly, sellers are allowed to make concessions towards closing fees.
An appraisal is completed to estimate what the final value of the property may be once work is done. The amount of the home loan will include the purchase price and expense for the work to be completed. Repair expenses may be as high as $35,000 or up to 35% of the appraised value.
More On HomePath Mortgages
If you are considering buying a Fannie Mae property that qualifies for HomePath, you should speak with an authorized lender beforehand. Your loan officer can furnish more comprehensive information on your qualification and what the specific costs would be. This will help you determine whether the home will be a good fit for you financially. For further information on this and other similar topics, contact Bradford Pratt at REMAX on the Charles at 781-316-5760 or email@example.com.