4 Ways HomePath Mortgage Helps Todays Home Buyers

Home buyers in the market right now have some tried-and-true mortgage loan options for financing a dream home, a first home or an investment home. One such option helps you buy a Fannie Mae owned property: HomePath Mortgage.

1. Low down payment options. The down payment requirement for a HomePath Mortgage starts at 3%. This means of course that a home listed for $50,000 would require $1,500 cash on hand and a $48,500 loan. Now, some lenders may require 5% down depending on several factors like credit score, but the low down payment is available even when purchasing a second home.  One major distinction to be aware of is that putting down the minimum 3% typically means buying down your interest rate due to the higher rate but the 5% is a lower interest rate.

2. No appraisal required. Appraisals cost money, typically between $375 - $450. While they’re often an important piece of the home buying puzzle, it’s also a cost many home buyers would like to avoid. Because Fannie Mae knows the value and cost of the home, an appraisal isn’t required. If you’d still like to have a home inspection (which is a good idea), you’re welcome to do so, but Fannie Mae does not require a home appraisal.

3. No Inspection or Repairs.  A typical FHA purchase usually means that the home has to be in move-in ready condition and this can cause a seller to make repairs based on the appraisal report.  With a Homepath purchase, there's no appraisal required, thus no repairs.

4. Secondary option (where available): HomePath Renovation. When a HomePath-eligible home needs work done to it – like replacing a missing furnace, updating old or broken windows, fixing a roof leak – the home may be considered a HomePath Renovation property. With HomePath Renovation, buyers can finance the cost of the property and the needed (and often desired) remodeling projects. You can borrow up to $35,000 in repairs – not to exceed 35% of the after-improved appraisal of the home.

In other words, as long as the repairs do not cost more than 35% of the appraisal after the work is done, you could finance a new kitchen, bathroom upgrades, and new windows. Financing this way is often much more affordable than short term, revolving credit options. 

Plus, it’s much more of a reality than a home equity line of credit, since the home has no equity as-is.

So, while there is still some cloudy weather ahead for the housing market, and we’re not out of the woods just yet, home financing options like HomePath Mortgage are certainly a sunny spot. A low down payment requirement and lower home prices are great incentives to get into the housing market and out that apartment.

To get started on the HomePath journey, visit their website at www.HomePath.com to learn more, and to find an approved lender. You can also look up listings on the site, to help plan where you’d like to live.

This is a guest article from Dan Moyle at Amerifirst Home Mortgage. AmeriFirst Home Mortgage is a community mortgage banker based in southwest Michigan. With more than 30 years in business, AmeriFirst weathered the housing market mess with grace, continuing to help qualified home buyers find the right financing at the right time for the right house.

Dan Moyle

Dan Moyle is a certified inbound marketing specialist for AmeriFirst Home Mortgage. The community mortgage banker headquartered in southwest Michigan is in its 30th year of business. For Dan and AmeriFirst, educating home buyers in today's market is a high priority.