The Benefits of a HomePath Loan

If you are currently in the Home Buying process, you may have noticed that some of the Bank Owned homes currently For Sale offer special HomePath Financing.  But what exactly is a HomePath Loan?

Bank Owned homes that offer HomePath Financing are Fannie Mae bank owned homes with Fannie Mae offering special financing to help people who may not have the conventional 10-20% Down Payment to purchase a home*.  There still are FHA Loans currently available for people who do not have this 10-20% saved up for their Down Payment, but if you have been trying to purchase a condo recently, you may have noticed that not many condominium complexes are FHA approved any longer and therefore 20% is the required Down Payment in such complexes!  (read my article about the FHA problem many condominium complexes are facing HERE).

(*Note: ask me for a list showing which properties are currently offering HomePath Financing in the Santa Clarita Valley and surrounding areas as not all Bank Owned properties offer this special HomePath Financing)

So, for those who can't find an FHA approved condo, or for those who don't qualify for the FHA program, a HomePath Loan could be of help to you.

Some benefits of a HomePath mortgage are:

• 3% down option that can be gifted from a close blood relative
• Flexible mortgage terms with fixed and adjustable rate options
• Interest only is available
• You can have as low as a 660 credit score
• You can get financing as an investor with 15% down
• No appraisal required
• No Mortgage Insurance 

No appraisal required?  That can be a great benefit in the current small "bubble" that we are again experiencing this Summer of 2012, as bidding wars continue (read my "bidding war" article HERE).

And although Fannie Mae is doing a great job in cleaning up most of the properties that they are selling, they even offer a Renovation Loan for certain properties to help you make your new Home even more liveable. 

Some benefits of a HomePath Renovation Loan are:

• 3% down option
• You can have as low as a 660 credit score
• You can get financing as an investor with 25% down
• An Appraisal is required on the renovation
• No Mortgage Insurance
• Cosmetic renovation up to $33,500 built in

The Fannie Mae website (HERE) reads:

Properties with this logo are eligible for HomePath Renovation Mortgage. HomePath Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors.

The downside of taking a HomePath Loan is that their interest rate is between .5%–.625% higher than a regular conventional loan.  But I ask you, aren't today's current interest rates still some of the lowest we have seen in history?  So, if you don't have the conventional 10-20% saved up, but you really desire to purchase a home, condo, or townhome at the current low prices being offered, then why should a slightly higher HomePath interest rate frighten you?

I am not a Loan Officer ... I am a licensed REALTOR(R) in the State of California ... so I do not know all of the ins-and-outs or pros-and-cons that a HomePath Loan may or may not offer you, but please feel free to contact me for the name of a local Lender who can answer your questions!

At the time of my writing this Article, there are currently TEN HOMEPATH PROPERTIES For Sale in the City of Santa Clarita ... priced between $121,900 all the way up to $445,900!  Call me now, to find out where they are located or to see inside any of the properties!  It would be my pleasure to help get you into a property you can call "home" ... with as little as a 3% Down Payment!

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LeeAnn Bell, REALTOR(R)
Contact me at:
661-309-2364  or at  LeeAnnRealtor@yahoo.com
DRE License #01260650

Here is what one client had to say about working with me:

The best part I liked about working with you was your ability to always fulfill our requests for more information.  You always came prepared and you were courteous and helpful"

Millie R.

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(c) 2012 LeeAnn Bell