Fannie Mae offers a special program to utilize when purchasing one of their foreclosures. This program is called the Fannie Mae HomePath Renovation Loan. There is also a program simply named Fannie Mae HomePath for homes that need no renovations. We will talk about how to purchase a fannie mae foreclosure in this article.
Both programs are great but just like the name would imply the Fannie Mae HomePath Renovation loan allows you to roll in any needed or desired repairs or upgrades. With this program there is no minimum amount of renovation required, as long as minimum property requirements are met, and no consultant needed like on the FHA 203k Rehab.
Key Benefits to these programs are:
• Low down payment as little as 3% and it can be a gift
• No monthly mortgage insurance
• The loan amount can go up to conforming loan limit of $417,000 (in Texas)
• Homes can be purchased and renovated to the buyers liking…Sell “as is” and let the buyer handle the renovations/customization
For a buyers agent how great will it be to not hear I wish the owners didn’t paint this room purple and that room lime green! That will no longer be an issue with the Fannie Mae HomePath Renovation Loan.
As an added benefit this program does allow for financing of Second homes and Investment properties. Investors like this program because it allows for them to put 10% down and do renovations whereas most other loans require 20% down and do not allow for renovations.
Going back to the Fannie Mae HomePath without renovation loan for a minute ….Let’s say the house could use some cosmetic updating but your buyer does not want to pay a licensed contractor to do the work and prefers to handle that himself via the old honey do list. That is possible as well with the straight Fannie Mae HomePath purchase.
The only downside to this program is that it can only be used on Fannie Mae owned properties…but if you are buying or selling a Fannie Mae property these programs are great!