Fannie Mae offers special mortgage financing on their foreclosed properties to help buyers with necessary rehab work.
The mortgage loan is called the Fannie Mae HomePath and the renovation loan is called the Fannie Mae HomePath Renovation loan.
The benefits of the HomePath loan include:
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- Available to both owner occupiers, second homes and investors
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
- No mortgage insurance
Another big benefit of HomePath Financing is that no appraisal is required (an appraisal will be required with the HomePath Renovation Program). This eliminates appraisal risk, saves money and allows more transactions to close.
Benefits & Details of the Fannie Mae HomePath Renovation Loan:
- No minimum amount of renovation and no Consultant needed
- Provides a conventional alternative to the FHA 203k with larger amounts of financing (up to $417,000.00)
- Offers greater flexibility on the types of repairs that can be financed
- Allow the financing of renovation on investment properties and second homes
- Newly purchased homes can be renovated before the borrower moves in
- Provides an outlet to purchase unfinished new construction foreclosures
- No required improvements (must meet minimum appraisal standards)
- Luxury items such as swimming pools, spas and saunas are allowed
- No lump sum upfront mortgage insurance like with the FHA 203K Rehab loan
- FHA allows for only one loan at a time; can have multiple Homestyle loans
Those are just a few of the varying benefits of Fannie Mae HomePath Renovation financing. For uses and benefits contact us today!
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Be sure to check out the Fannie Mae HomeStyle Renovation loan which is very similar to the HomePath loan but the home doesn’t have to be sold by Fannie Mae to be eligible.
We are a National Lender but happy to locally serve the Counties of Dallas, Denton, Collin and Tarrant.