Can I use a HomePath loan for an investment property?
I want to take advantage of the HomePath program for a foreclosed property in my area, I like the 3.5% down payment and no mortgage insurance. However, I read that occupants get a better program compared to investors and I was curious what that entails. I have great credit (823 middle FICO) and can pony up some cash (got around 50k in savings that are liquid to be invested), however I do want to see if I can do the Rehab version of the HomePath as well for some renovations to the home I'm looking at. What are the differences, and if they're that much different, what type of mortgage should I go with? Home was appraised at 193k, my monthly take home is somewhere around 5-6k after taxes and current mortgage/bills. by gallan_918_780 from Claremont, California. Dec 27th 2011
Ryan Romero (REFIryan)
#456 ranked lender in California - 28 contributions
No not at all ... Ryan Romerowww.rmfundinggroup.com888 308 7775
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Hey Gallan... You can use HomePath as an investor, however the lenders will require 10% down minimum. The HomePath renovation loan is insured however there are hardly any lenders out there that will do them. Your best bet is to contact a local mortgage broker, not a bank, and apply with them.. they have access to a vast number of lenders and can find the one lender out there that will do this specific loan. WilliamAcres.com
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Although it is true that FNMA is giving preferential treatment to owner occupant buyers, that doesn't mean you can't use HomePath for an investment purchase. You will be required to put a minimum of 10% down if you are not going to occupy it. As far as doing a HomePath Renovation loan, the home must be approved for HomePath Renovation. If the listing does not indicate so, then it isn't. As I recall, FNMA does not allow renovation loans for non-owner occupied homes. My best advice is to contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org
Aaron Brown (aaron.brown)
#78 ranked lender in Arizona - 37 contributions
We Do them!!!Down Payment Requirement for Investor Purchase ( Home Path Renovation ) is 25%Give me a call at 480-538-0611 Ext : 226Aaron BrownFlagstar Bank
Crestico Funding (CresticoFunding)
#316 ranked lender in California - 340 contributions
Yes, Hompath is aviable for Investors as well. if you need additional information please feel free to contact us using our profile page or call 310 933 4748 directly to talk to one our mortgage professionals. Thank you.
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