Fannie Mae Homepath Loan Program Discountinued October 6, 2014
Fannie Mae Homepath Mortgage Loan Program will no longer be eligible for use by home buyers effective October 6, 2014. Fannie Mae designed the Homepath loan program to be used to purchase specifically targeted homes in their inventory of homes for sale. The Homepath loan is a special loan program that allows a home to be purchased with no appraisal and no mortgage insurance with only putting down 5% of the purchase price as a down payment. The original program only required 3% down payment but that was increased to 5% down payment effective November 1, 2013.
The highlights of Fannie Mae Homepath Loans are as follows:
- No Lender-requested appraisal
- Only 5% down payment and can be from gift funds
- Flexible terms (ARM or Fixed)
- No Mortgage Insurance Required
- Expanded Seller Contribution from 3% to 6%
- Available for Primary Residence, Second Home & Investment
In order to still use the Homepath financing program, you must have a fully executed sales contract with Fannie Mae before October 6, 2014. The property must be eligible for Homepath. You can check that the property is eligible by looking the property upon Fannie Mae’s website at www.HomePath.com. You need to see the following symbols on the property:
Fannie Mae Homepath also has a renovation loan option called Homepath Renovation. The loan program also doesn’t require mortgage insurance but does require an appraisal to determine the required repairs. The renovation amount of the loan is based on the as completed value or after repair value. The maximum renovation loan amount is $35,000. The property must have the following symbol on the Homepath website:
If you would like to take advantage of this loan program before it is gone, the first step is to get pre-approved and then quickly search for a homepath eligible property in your price range. For a fast Fannie Mae Homepath Loan Pre-approval call 302-703-0727 or apply online at Homepath Mortgage Application
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713