HomePath Financing is Available at Academy Mortgage, Arizona
If you are thinking about buying a home and FHA is not an attractive or viable option or better yet, the property does not meet FHA’s stringent requirements, you might want to think about using HomePath Financing by Fannie Mae. For a while many lenders and brokers remained at a distance from this program due to very few investors actually approving this program. However, Academy Mortgage is now one of those lenders. We are well known for our efficiency and detailed customer service thus making the process as painless as possible.
Here is a quick synopsis of the HomePath Mortgage:
- Minimum 3% down for primary residence, 10% down investment property
- Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
- NO APPRAISAL NEEDED
- NO MORTGAGE INSURANCE
- High balance (jumbo) and interest only products available
- Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
- This loan does price with a higher rate than your average 30 year fixed conforming loan. If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points. Keep in mind, much of this can be covered by the seller and there is no mortgage insurance. Of course one can just opt for the higher rate in lieu of the discount points.
- Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing – no problem)
This will allow for light renovations to the property that can be included into the loan. Information about this specific product is scarce. In general, renovation and construction type of products work like this:
- An appraisal is done “subject to” the completion of the repairs. The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower. The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
- The loan closes and the repairs are completed by a licensed contractor within a specified amount of time
- There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc.
- The interest rate is typically higher than your general conforming 30 year fixed
With the streamlined process, we at Academy Mortgage make it easier with our Ten Day Close Guarantee, call us and ask for more details.
