Mortgages 101 – Sorting out the Options, Part 5: HOMEPATH by Jennifer Prestwich Your North Suburban Denver REALTOR

When it comes to mortgages, there are a lot of options to sort out.  When I am working with clients, they often ask me about mortgage rates and down payments, and the answer can vary.

In Part 1 of the series, we examined FHA mortgages.  In Part 2, we took a look at Conventional Mortgages.  Part 3 examined VA Loans.  In Part 4, we looked at USDA Loans.

This final part of the series is dedicated to HOMEPATH financing.  This is meant to be an overview – a licensed Loan Officer will help you examine all of the options more closely to help you determine the right choice for you.

HOMEPATH: Homepath loans are for homes that are already owned by Fannie Mae.  These are homes that were originally purchased with a Fannie Mae loan, but have since gone through the foreclosure process and are being sold again as “REO” properties.  They are not owned by a bank, but instead are owned by FNMA- the Federal National Mortgage Association, or “Fannie Mae”.

Minimum Down Payment: 3% for the first purchase, 10% for a second home or investment property.  Also, there is no appraisal required.

Mortgage Insurance: none.

Minimum Credit Score: 620 minimum.

Ownership Types: Primary residence, second home OR investment property.

Property Type: Usually a “fixer-upper.”  Check www.homepath.com to see available inventory.

Pros: Low down payment, no appraisal, no mortgage insurance.  Can be used for a primary residence, secondary, or invesment.  Can be used for up to 4 properties at one time.

Cons: Usually a higher interest rate dues to the lack of mortgage insurance required.

Want to live in your dream neighborhood for 3% down?  Call me at 720-341-5235 to find out what’s available in Henderson, Thornton, Northglenn, Broomfield, and Westminster!


 

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