HomePath Loan Program Discontinued By Fannie Mae
This guide covers the HomePath Loan Program has been discontinued by Fannie Mae. Fannie Mae has an inventory of the homes that they have foreclosed. These Fannie Mae owned foreclosures are called HomePath properties. For several years, Fannie Mae offered the HomePath mortgage program for homebuyers who qualified for conventional loans. The HomePath program allowed home buyers who qualified to purchase a Fannie Mae owned property with very little down. The HomePath mortgage program did not require mortgage insurance and no appraisal was required. Fannie Mae’s HomePath program was available to owner-occupant properties, second homes and vacation homes, and investment homes. In this article, we will discuss and cover the discontinuation of the HomePath Mortgage Program By Fannie Mae.
Fannie Mae Will Discontinue HomePath Loan Program Effective
Fannie Mae has announced that the HomePath Loan Program: The HomePath Renovation Loan Program will no longer be effective October 6, 2014. For home buyers who are currently looking at HomePath properties and are pre-approved for a HomePath Loan, need to have the real estate purchase contract executed no later than October 6, 2014. The mortgage loan application, as well as all disclosures, need to be dated no later than October 6, 2014. The HomePath Loan does not need approval or does not need to be processed by October 6, 2014. However, the mortgage package needs to be dated by October 6, 2014. There are no exemptions and no exceptions. Just having the mortgage loan application dated October 6, 2014, is not enough. The signed (both home buyer and home seller ) and dated real estate purchase contract also needs to accompanied with the signed mortgage loan application. All HomePath Loan programs need to close tentatively by February of 2015. The final dead line date for all HomePath Loan closing has not yet been determined. Speak With Our Loan Officer for Fannie Mae Loans
Fannie Mae HomePath Properties
The discontinuation of Fannie Mae’s HomePath Loan programs will not discontinue Fannie Mae HomePath properties. Fannie Mae will continue to accumulate foreclosed homes and will be under the Fannie Mae HomePath home program where investors and home buyers can still purchase HomePath homes. However, effective October 6th, 2014, Fannie Mae owned home buyers need to use other mortgage loan programs. Buyers can purchase a Fannie Mae owned property with an FHA, VA, USDA, and conventional loans. But must qualify for whichever mortgage loan program they choose.
FHA Loans And Conventional Loans Are Options For Fannie Mae Properties
Fannie Mae’s HomePath Renovation Loan program will also get discontinued effective October 6th, 2014. Fannie Mae’s HomePath Renovation Loan program is an acquisition and construction loan all rolled into one. For those seeking a renovation and acquisition loan with a Fannie Mae owned property, they need to either go with an FHA 203k mortgage loan or a conventional HomeStyle mortgage loan. The HomeStyle renovation mortgage loan program will not be effective with the elimination of the HomePath mortgage loan program and the HomePath Renovation mortgage loan program.
Frequently Asked Questions on Fannie Mae HomePath Loan Programs
The HomePath Loan Program no longer exist. However, we will list the FAQ on HomePath Loan Program so our viewers are familiar with the now extinct HomePath Loan Program. GCA Forums Mortgage Group has alternative renovation loans on conventional loans, FHA loans, and VA loans. Contact us for more details.
The Fannie Mae HomePath Loan Programs provide answers to some commonly asked questions, comprising the frequently asked questions, which assist prospective homebuyers who wish to buy homes associated with Fannie Mae through feasible lending conditions.
“Fannie Mae HomePath Property: What’s That?”
Answer: Fannie Mae owns the HomePath property, which is a house whose mortgage has been foreclosed. When a home is foreclosed, Fannie Mae claims ownership and then relists it on the HomePath program.
What is the Fannie Mae HomePath Loan Program?
Answer: The HomePath loan program assists in the purchase of homes owned by Fannie Mae and provides favorable conditions for loan repayments. The mortgages are considered less strict than home loans, often requiring almost no deposit and no insurance, and sometimes providing means for including the repair as part of the loan as well.
I Am Considering Buying a Second Home or Investment Property. Can I Get a HomePath Loan Program?
Answer: Homepath loans are available to primary residents, second homes, and investment properties. Nevertheless, the usage of the property determines the down payment rate.
On a HomePath Loan Program, How Much Money Would Initially Be Needed to Pay for the Loan?
Answer: It is mostly around 3% of the primary homes. A deposit of approximately 10% to 15% is almost always required for rental or investment properties.
Are Mortgages Secured By the HomePath Loan Program Required to Bear Insurance?
Answer: No, HomePath loans do not apply the PMI restrictions requirement, even if the borrower makes a down payment of less than 20%. This means huge monthly costs are eliminated from the borrower’s budget.
Are HomePath Properties Sold in Any Specific Condition?
Answer: Yes, HomePath properties are sold in their exact state. This is because Fannie Mae does not undertake any repairs, which means the buyer of the property has the repairs to manage. But instead of buying a home, they can purchase HomePath Renovation Loans, which help them do the renovations at once.
What Do You Understand By the Term HomePath Ready Buyer Program?
Answer: The HomePath Ready Buyer Program is a first-time homebuyer’s education program in which eligible buyers can receive up to 3% of the purchase price as assistance in closing costs. To become eligible, buyers must complete an online course.
Can You Explain How Any Potential Homebuyer Can Use The HomePath Loan for Renovations?
Answer: Meanwhile, the HomePath Renovation Loan includes the property cost and even the major changes that a buyer would like to assist the cost with. The program can be used for repairing and upgrading structural components for a single house or condo up to a total contribution limit for a specific class of assets portions of the cost.
Are Conventional Mortgages Accepted when Buying HomePath Properties?
Yes, as long as the buyer meets the criteria set up by various lenders, a HomePath property may be bought using a conventional mortgage or any other means of financing. Unlike other loans, HomePath makes it easier by providing a low deposit and avoiding PMI.
Is there a period Reserved for Owner-Occupants to Buy HomePath Properties?
Fannie Mae can declare twenty days, known as First Look, to give owners who will occupy the house priority in buying it. This will only allow public agencies, certain non-profit organizations, and owner-occupants to place offers until the expiration of the set durations at which investors are allowed to make offers.
Are Closing Costs Covered with HomePath Loans?
HomePath states that they do not. However, there’s a specific course first-time home buyers must take before buying. This course will offer assistance with the closing costs.
Is There a Possibility of Inspecting the Property or Home Before Purchasing HomePath Home?
It is necessary to inspect before buying a home using HomePath. However, the buyer should be informed that as is, Fannie Mae sells the properties, and there will not be any changes made, meaning the repairs should be informed and highlighted.
How Long Would You Need To Spend Money To Close A HomePath House?
HomePath properties include single-family gardens, condominiums, and multi-family homes in different conditions and price points, depending on the market and the location.
Why Would An Investor Want To Buy A Foreclosed Property?
Some lenders offer anti-flipping clauses, and some do not claim an asset is being used for investment purposes. Reviewing whether you bought such a property for resale shortly is better.
Can I Enjoy Ownership Rights Of A HomePath Property Instantly?
Owning investment properties and obtaining an HFA deed are distinctly different. The latter allows borrowers to acquire single-unit manned investment properties. Local guidelines and lender standards on flipping are invaluable.
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