I have had several buyers ask me recently about Fannie Mae’s HomePath Financing
(formerly ExpressPath Financing). According to a mortgage broker that I deal frequently with, HomePath Financing allows for special financing for designated FNMA-owned foreclosed properties
. The program is fairly expensive so there are particular circumstances where it would be appropriate:
1. For properties where an appraisal could show issues. There is no appraisal required on these loans.
It requires a minimum 3% down for a primary home.
2. For investors since it allows investment property purchases with as little as 10% down. A 6% seller credit/concession is allowed with HomePath Financing.
3. Also, Fannie Mae condominiums that are not warrantable (there's no active condo association) by traditional standards may also be an opportunity to use HomePath Financing.
HomePath Financing definitely costs more than MassHousing or FHA loans. The rate is about 1% higher than more conventional 30-year fixed rates, however apparently you are not required to pay PMI under this program. PMI typically translates to a similar increase in payment as a 1% rate increase. Additionally, additional points may be required in order to get the loan.
For additional information, click on the Fannie Mae HomePath financing link, or search for what properties qualify
, or feel free to call or email me...