HomePath Renovation Mortgages finance the home purchase and light to moderate renovations.
HomePath Renovation Mortgages are one of two types of mortgages that can be used to buy foreclosed residential properties owned by Fannie Mae. The properties are sold in as-is condition, but if the borrower receives a HomePath Renovation Mortgage he receives funding not only for the cost of the home but also for light to moderate renovation work up to $35,000.
Eligibility Requirements
HomePath Renovation Mortgages can be obtained for primary residences, second homes and investment properties. To be eligible for the HomePath Renovation Mortgage, the borrower must be a U.S. Citizen or a permanent resident alien. Repeat buyers or first-time home buyers with a maximum of two borrowers on the loan can qualify. The property must be designated by Fannie Mae as HomePath Renovation Mortgage eligible. The types of properties that can be eligible include single-family detached homes, attached town homes and condominiums and manufactured homes.
Financing Requirements
The percentage of financing that the HomePath Renovation Mortgage will cover depends on the borrower's credit score. The loan will cover up to 97 percent of the loan-to-value ratio of the home if the borrower has a credit score of 660 or higher and up to 80 percent if the borrower's credit score is 620 or higher. The loan will cover 75 percent of the loan-to-value ratio of the home for investment properties if the borrower has a credit score of 700 and above. The HomePath Renovation Mortgage does not have a maximum income limit, but it does have a maximum mortgage amount of $417,000.
Lenders
The number of lenders approved to write HomePath Renovation Mortgages varies from state to state. They include, among others, Colonial National Mortgage, a Division of Colonial Savings FA; First Citizens Bank and Trust Company Inc.; First Federal Savings and Loan of Charleston; Flagstar Bank; Platinum Home Mortgage Corp.; PrimeLending, A Plains Capital Co.; and Umpqua Bank -- Residential Mortgage Lending. Borrowers can obtain a fixed rate mortgage that has the same interest rate for the term of the loan, ranging from 10 to 30 years, or they can obtain an adjustable rate mortgage that has a fluctuating interest rate.
Other Information
HomePath mortgages were created to sell foreclosed homes that are now owned by the Federal National Mortgage Association, better known as Fannie Mae. Fannie Mae is a government-sponsored entity that buys residential mortgages from other lenders and holds them on the secondary market. The HomePath Renovation Mortgage, which requires a 3 percent down payment, helps Fannie Mae sell its foreclosed properties. To find out if you qualify for a HomePath Renovation Mortgage for a Fannie Mae property you can call 866-351-3229 or apply online.
Tags: HomePath Renovation, Renovation Mortgage, HomePath Renovation Mortgage, borrower credit, borrower credit score, credit score
