Have you heard the news? As of October 6, 2014 the HomePath and HomePath Renovation Programs will be history. That’s right; Fannie Mae recently announced that they are retiring this loan program. Any person purchasing a Fannie Mae owned property wishing to use either a HomePath or a HomePath Renovation loan must have a fully executed contract dated on or before October 6, 2014. Fannie Mae has yet to state the date the loan must close but it’s speculated that it would need to close by January/February of 2015.
So you are probably left wondering what to do given this news…not to fear! The Fannie Mae HomeStyle and the FHA 203k loans are alive and well. In fact the demand for renovation lending is stronger than ever.
The myth that you can only purchase a Fannie Mae owned home using a HomePath program is just that…a myth. Any type of loan can be used and if renovation is needed or desired the Fannie Mae HomeStyle or the FHA 203k loan will take care of your needs! This is also true of HUD owned properties.
So let’s talk briefly about the renovation lending options…
Facts about Fannie Mae HomeStyle loans:
- Loan amounts up to $417,000
- Pools can be repairs or installed – providing the appraisal supports the value
- Minimum down payment is 5% of the total loan amount (purchase price plus renovation costs)
- With a 20% down payment mortgage insurance can be avoided
- Investors may purchase and renovate
- 2nd homes are allowed
Facts about FHA 203k loans:
- Loans up to the county loan limit – currently $287,500 in Dallas County
- Down payment is 3.5% of the total loan amount (purchase price plus renovation costs)
- Can finance up to 110% of the “after improved” value on a purchase transaction
- Minimum FICO of 620
- For minor repairs there is an option to use the FHA 203k streamline whereas for larger projects there is a Full 203k version
Both programs allow for foundation repair, roof repair, additional square footage and back yard upgrades!
Renovation loans are not just for homes being sold by HUD or foreclosed properties. Just about all homes are eligible, including Condos.
Saying goodbye to our old friend, the Fannie Mae HomePath loan is sad but let us show you how great the alternates are for renovation loans – the Fannie Mae HomeStyle and the FHA 203k.
Don’t need a renovation loan? Well we have you covered there as well! We offer all types of loans so from FHA to VA to Conventional and even Jumbo loans…we have them all.
Give us a call today and let us put together a home loan that will fit your needs!