If you are seeing a Fannie-Mae owned listing, you may notice a notation about HomePath mortgages. These loans are exclusively for Fannie Mae properties and offer some great terms. The HomePath mortgage introduction for Melrose MA buyers in this blog will give you a general understanding of this program and its benefits.
HomePath Financing Terms
HomePath home loans are provided through select local banks, mortgage companies, and credit unions. There are two distinct options. The first is HomePath Mortgage, which covers move-in ready properties. The second is HomePath Renovation Mortgage for listings needing rehab; it permits home buyers to roll-in repair costs.
Key Features of the Program
Both loans can be used to purchase principal residences, second homes, or investment units. Down payments may be as low as five percent and the money may be a gift, a grant, or even loaned under certain conditions. No mortgage insurance is mandated, but there may be a cost associated with this option. Sellers contributions are allowed. Loan terms can range from fixed rate to interest-only and variable rates.
Appraisals are not needed for HomePath Mortgages. For HomePath Renovation Mortgages, an appraisal is requested to estimate the post-renovation value of the home. The renovation expense added to the loan is calculated using this estimation. The amount can be no greater than $35,000 or 35% of the appraised value.
Most local lenders offer HomePath mortgages. Buyers should compare this program with other options solutions. When evaluating fixed rate, variable rate, and interest-only programs, review the advantages and disadvantages of each. Some home loan programs may be a better fit than others depending on your circumstances and plans. Using HomePath financing is not required when purchasing a Fannie Mae listing. It is simply an option that may make purchasing easier. As with any kind of loans, closing expenses and other terms can differ with each lender. The HomePath mortgage introduction for Melrose MA buyers in this blog is strictly an overview of the program, may not detail all of the particular requirements, and is subject to change. Contact with a local loan specialist for up-to-date information.