The HomePath Mortgage Program was created by Fannie Mae to allow homebuyers buying a Fannie Mae repossessed home some perks. Some of these perks make the HomePath loan program more advantageous over FHA Home Loans.
Home buyers looking to purchase a Fannie Mae repossessed home can use the HomePath Mortgage Program, an FHA or some other type of financing, or even pay cash. If you are looking to purchase one of these Fannie Mae homes and you need to finance it you may want to consider the HomePath Mortgage for the following three benefits.
HomePath Mortgage Program Advantages Over FHA Home Loans
- Less Money For Your Down Payment - the HomePath mortgage only requires a minimum down payment of 3% versus 3.5% required for an FHA mortgage. With both of these mortgage options the down payment can come in the form of a gift.
- No PMI - PMI (Private Mortgage Insurance) is typically required for mortgages that have a loan balance that is greater than 80% of the home's value or sales price. With the HomePath Mortgage you may not be required to pay PMI but you will have to pay PMI if you get a FHA Loan. With no PMI required you could save yourself a few hundred dollars with a HomePath loan.
- No Appraisal - To use the HomePath Mortgage you can only use it purchase a Fannie Mae foreclosed home. To facilitate the sales and mortgage process the home loan will be based on the sales price that you negotiate with Fannie. You will have to work through your real estate agent to negotiate with Fannie Mae.
To speak to a real estate agent or a mortgage loan officer about the HomePath Mortgage Program and buying a Fannie Mae foreclosed home please complete the form below:
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