A homebuyer purchasing a home that qualifies for a HomePath Renovation Mortgage may borrow more than the home's value as-is.
This type of loan allows the homeowner to purchase a home that needs repairs and to finance the repair work cost into the mortgage amount. The buyer then has one loan that includes the costs for renovation and purchase. However, borrowers will need to find a Fannie Mae-approved lender to apply for and obtain the loan from rather than contacting Fannie Mae directly. To find a lender, visit the HomePath Mortgage Renovation website. As a borrower, the HomePath Renovation Mortgage can help to pay for the moderate renovations a home needs.
Each scenario is different, but there are benefits to some homebuyers choosing this type of loan. The HomePath Renovation Mortgage is only available to homes that qualify. To find out if the home qualifies, check with your Fannie Mae-approved lender.
This information is available on the listings, in most cases. Before buying a home with this program, be sure it provides for your specific financial needs. In some cases, these properties may sell for a low amount, but this is not always the case. The loan has a low down payment but it must be at least three percent. Choose the type of terms right for you between a fixed-rate or an adjustable-rate mortgage. For investors, the minimum downpayment is just 10 percent. Furthermore, downpayments on a HomePath Mortgage can be gifted from a family member; or, made via a grant or loan from a non-profit organization, state or local government, or employer.
Designed to promote homeownership and neighborhood stabilization, First Look makes properties available to primary home buyers 20 days prior to real estate investors.
First Look gives primary home buyers an opportunity to buy HomePath-eligible homes without the pressure of bidding against bona fide investors. For example, in order to qualify for the HomePath Mortgage, your lender will verify your income via W-2s and tax returns; your assets via bank statements; and, your credit scores via an official credit report.
Subject properties must also be marked as Fannie Mae HomePath-eligible. Your real estate agent can help you to locate participating properties. Condominium can be non-warrantable via the HomePath Mortgage program but lenders will require the project to carry minimum insurance to protect against loss.
Buy and install new appliances - From missing appliances to old ones that need updating, you can buy new ones and put them in yourself. Replace floors with DIY laminate flooring - Laminate floors come with pretty easy directions, and many people can install them on their own I did, and I'm definitely no Bob Vila! You could always hire a professional, but if flooring installation sounds like a challenge you want to take on, then you can roll the cost into your HomePath Renovation mortgage.
Build or repair a deck - What better way to enjoy your new house than with a cookout with your friends and a deck-building party! Install gutters and downspouts - I've never done it, and I have no idea how difficult it would be to make sure every gutter is laid out just right so it drains properly, but it's a project you could do yourself, if you want.
Amerifirst Home Mortgage. Connect With Us. Content Title Description. Recent Popular Categories. Latest Articles. The amount of the mortgage will be based on the purchase price plus expense for repairs. When looking into purchasing a Fannie Mae property that qualifies for HomePath, you should contact an authorized lender as soon as possible. Your lender can furnish more comprehensive information on whether you qualify for the program and what the loan costs will be.
This will help you decide if the property will be financially optimal. DaMore Jr.
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