Homepath Renovation Mortgages are available for Fannie Mae foreclosed properties.
A renovation mortgage is a mortgage that wraps the costs of small renovations and repairs into the total loan amount on a property. For select foreclosed properties under the Fannie Mae program, the Homepath Renovation Mortgage is an available loan product.
Significance
A homeowner interested in a Fannie Mae foreclosure property listed at $135,000 that requires $10,000 in renovations could close on a $145,000 loan and have the renovation cost wrapped into the mortgage at closing. The amount of eligible repairs will be on a case-by-case basis and is determined based on the borrower's credit history as well as the estimated cost for all renovations to a property, but should not exceed the total value of the property itself.
Down Payment
The down payment percentage on a Homepath Renovation Mortgage is set at 3 percent as of September, 2010.
Interest Rates
Buyers can select either a fixed rate or variable interest rate when selecting a renovation loan. The interest rates on Homepath mortgages will normally be competitive with market rates for home equity loans or lines of credit.
Property Eligibility
Only properties that had a loan serviced by Fannie Mae are eligible for Homepath Financing. This excludes Department of Housing and Urban Development (HUD) or Veteran's Administration (VA) foreclosures.
Tags: Homepath Renovation, Homepath Renovation Mortgage, foreclosed properties, Renovation Mortgage
