HomePath home buying programs
If you are interested in purchasing a foreclosure, HomePath might just be the right program for you. HomePath is Fannie Mae REO brand. HomePath bundles many incentives for home buyers interested in purchasing a Fannie Mae REOs. While most foreclosures and REOs are purchased with cash or conventional loans (20% down) because they need repairs and are sold as is, it’s a different process with HomePath. A home buyer purchasing a home from HomePath can purchase a Fannie Mae foreclosure in the Charlotte NC real estate market with only 3% down and no PMI (private mortgage insurance usually added to monthly mortgage payments if a property is purchased with less than 20% down).
Most Fannie Mae REOs are update and repaired so they can qualify for FHA financing and other types of financing.. Many Fannie Mae REOs are in excellent condition (still need to have a home inspection done to be on the safe side). Most Fannie Mae properties are sold “as is”. In addition, HomePath Renovation Mortgage allows a home buyer to purchase a Fannie Mae property that requires light to moderate renovation. The loan amount would include both the funds for the purchase and the renovation (renovation costs must not exceed 35% of the “as completed value” and no more than $35,000).
Closing costs assistance with HomePath
Exclusive Access to Properties with First Look
Fannie Mae owned properties can be purchased without competition from investors thanks to the First Look™ program whereas priority is given to homebuyers and community-minded organizations (public entities and some non-profits).
Flexible financing with HomeReady Mortgage
HomeReady Mortgage makes it easier and more flexible to purchase a Fannie Mae REO with only a 3% down payment, a 620 credit score and a cancellable mortgage insurance. In addition, this program allows for co-borrowers without have the requirement for the co-borrowers to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Some income limits may apply. Additional income sources that not traditional can also be accepted such rental payments from a basement apartment.
HFA Preferred mortgage
HFA Preferred is a conventional loan that is available to eligible first time and repeat home buyer with low to moderate income in the Charlotte NC area. With HFA Preferred, only 3% of the purchase is required for the down payment and you can leverage down payment assistance programs available the state Housing Finance Agency. There is no first time home buyer requirement with this type of mortgage like it is the case with some other down payment assistance programs. The monthly mortgage insurance is also lower than government insured mortgages like FHA and is cancellable once you have 20% equity in your home. If you qualify, you could also get as much as 3% in closing cost assistance.