Fannie Mae HomePath – New Deal for Foreclosures
February 9th, 2009 | 
Author: Foreclosures, how to buy them and maybe most importantly, when. I have been discussing how to use the FHA 203k Streamline as a great way to buy your personal residence and be able to fix it at the same time. Effective today, we have another program to help purchase foreclosures (or REO – Real Estate Owned) properties that are owned by Fannie Mae. This new program is called HomePath. This is an unusual program because it allows not just personal residences, but also second homes and investment properties as part of the program.
So, what is so special about the HomePath program? Well, to start with, it is available up to 95% loan to value on a personal residence, including double wide manufactured home/land properties, with no mortgage insurance. SAY WHAT!!!! Not only that, it is available up to 90% loan to value for investment property and second homes, also with no mortgage insurance. Appraisals are not required. Only those REOs registered with the HomePath program are eligible for the program.
There are currently three homes listed on the website in Eugene, two in Springfield, three in Cottage Grove, three in Creswell, one in Junction City, and one in Veneta. Of those, one of the Springfield properties, two of the Cottage Grove properties, one of the Creswell properties, and the Junction City property show as being under contract. There are six currently listed in Salem, but three of those are under contract. There are 10 listed in Bend with none of them showing as under contract. To find out what properties are available in your area, go to www.homepath.com. There will be a HomePath renovation program available at a later date, but not currently.
This is a very specialized program, with limited properties. However, if you are an investor, where else can you buy a home at 90% loan to value and not pay mortgage insurance? For that matter, where can you buy a home at 90% loan to value as an investment property? As I stated before, I still believe that it is in your best interest to have your own Realtor® representing you in this process. Call me today to get pre-approved to purchase one of these homes. These deals will not last long as investors snap them up.
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I am currently talking to a HomePath mortgage lender, hoping to purchase an investment property on the HomePath list. The loan officer is telling me that mortgage insurance is still required for investors. Then she tells me she can’t find a single mortgage insurance provider that will insure with only 10% down! Is this loan officer telling me the truth, or do I need another mortgage company?
I’m hoping this isn’t a case of too-good-to-be-true, but its looking that way!
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Kris, I sent you a personal e-mail but I want to follow up here so that everyone knows that your lender really doesn’t know the program. If they are truely a HomePath Lender, then they should know that there is no mortgage insurance required either on the 10% down investment or the 5% down personal residence purchase. Also, there is no appraisal required, even though you might want one just to feel better, not required. Let me know by private e-mail and I will put you together with a lender that knows what they are doing.
Take care, and good luck.
Can you provide more information or how to go about getting insurance?
issues arise for each individual when it comes to being insured
best regards
Well, my best solution is to check with local agents and find out which one will be the best fit for your situation. The Realtor and/or Mortgage Advisor is also an excellent source for referral.
I live in Kansas and we have a Fannie Mae Repo in our town that is listed for sale through a real estate agency in another town. They told us that we would have to get a home path loan and that the home path loan would not cover it because it was a prefab or modular home. Now this does not make sense to me because the only way they are going to sell it then is cash only. Too bad because I would love to have this house and it is finally at a price that is right.
I am assuming that you are referring to a manufactured home, not a modular. If it is manufactured, then the only way you can get it done is with a new loan, not HomePath since they don’t (now) finance manufactured homes, at least with any of the lenders that I use. Sorry, I don’t have better information for you.