I wanted to write another article about Fannie Mae Homepath Mortgages because it is such an incredible option for first time home buyers and ALL home buyers to get financing to buy a home in California today.
As a refresher, Homepath is a home loan offered on all properties owned by Fannie Mae. Fannie Mae is an organization that purchases loans from lenders such as us and securitizes them in the secondary market. They purchase certain loans from lenders to allow lenders to keep making more loans to homeowners. When a home owner defaults on a Fannie Mae owned loan and Fannie Mae forecloses on the property, they become the owner of that property and put it up for sale on the open market. They offer special Homepath Mortgage financing on all of these properties. And there are a lot of properties out there that are Fannie Mae owned. So first thing to remember is it has to be a Fannie Mae owner property to get the special financing I am going to describe below.
OK, now on to the features and benefits of Fannie Homepath Loans:
- Remember, it has to be a Fannie Mae owned home to get this special financing. Your Realtor should be familiar with Fannie Mae listings and it will almost always say the property is Fannie Homepath in the MLS listing
- Homepath minimum down payment is only 3%
- Homepath mortgage financing is available on a wide range of properties in all locations in California; from higher priced coastal areas such as San Diego, Orange County, Los Angeles, San Jose, San Francisco….to lower priced inland areas such as Sacramento, Fresno, Inland Empire, and everywhere!
- The is NO mortgage insurance with Homepath Loans! HUGE advantage! No up front OR monthly mortgage insurance. This compares favorably to FHA loans which have a 2.25% up front mortgage insurance cost and a .5 to .55 monthly mortgage insurance cost. Standard conventional loans carry monthly mortgage as well.
- There is NO worries of condo eligibility with Homepath loans. With FHA loans and conventional loans, condo projects have to pass a whole bunch of tests such as % owner occupancy, % hoa due defaults, hoa maintenance reserves. Homepath Mortgage Financing requires NONE of these checks!
- There is NO appraisal required with a Homepath Loan. This saves you the cost of an appraisal and the potential obstacles to financing an appraisal can create
So those are some of the advantages of Homepath financing. Some of those are really huge advantages. For instance you may be able to get a really great deal on a fixer homepath property with a low down payment that would not be financeable with an FHA or conventional. Or you may be able to buy into a condo project you love with a low down payment that you would not be able to get a low down FHA loan on. And lastly, the savings from not having mortgage insurance over the life of the loan can be thousands of dollars.
So I hope you enjoyed the article and please give me a call if you have any questions about Homepath Financing in California. Call me at 858-922-7899 or homeloan8@gmail.com.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and Homepath, FHA, VA specialist)
858-922-7899
We are a direct lender offering Homepath Financing.
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Related posts:
- Fannie Mae Homepath Conventional Loan vs FHA for California Home Buyers
- Fannie Mae Homepath Loans An Excellent Alternative to Getting FHA Loan California
- Update on $8,000 Tax Credit Extension – Helps When Get FHA Loan To Buy In California
- Update on The $8,000 Home Buyer Tax Credit – Great Chance to Get an FHA Loan to Buy a Home
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