Fannie Mae HomePath Loan Program For Home Buyers
This BLOG On Fannie Mae HomePath Loan Program For Home Buyers Was UPDATED On January 30th, 2018
Fannie Mae To Contribute 3.5% Closing Costs
Fannie Mae’s HomePath loan program will offer to pay up to 3.5% of the purchase price towards the buyer’s closing costs.
Home Buyers closing costs are the following:
- Origination Fees
- Title Charges
- Pre-Paid which are escrows
- Appraisal Fees
- Discount Points
- Title Charges
- One year homeowners insurance premium
- Flood insurance if applicable
- Attorney’s fees
- Appraisal Fees
- Any other costs and fees with the origination and closing of the home loan with the exception of the down payment
This phenomenal HomePath loan program where Fannie Mae pays 3.5% is only available now through March 31, 2014
Fannie Mae HomePath Loan Program
Fannie Mae has its own inventory of foreclosed homes where HomePath home buyers can only put down a 3% down payment for owner-occupied homes. 10% down payment for second homes and investment homes.
- HomePath loan programs are conventional loan programs
- Conventional mortgage lending guidelines apply
Minimum Credit Score Requirements
HomePath loan borrowers need a minimum of a 660 credit score to qualify
Their debt to income ratios are capped at 31/43:
- 31% front end debt to income ratio
- 43% back end debt to income ratio
- HomePath loans generally have higher mortgage rates than traditional conventional mortgage loans
- There is no mortgage insurance required with HomePath mortgage loans
- There is no appraisal required on HomePath loan programs since the property is owned by Fannie Mae
Fannie Mae knows the value of their inventory and that is the reason why there is no appraisal requirement.
How Can I Participate In Fannie Mae’s HomePath Loan 3.5% Closing Costs Assistance Program?
To participate in Fannie Mae’s HomePath Loan 3.5% closing cost assistance program, the home buyer needs to make a purchase offer on a Fannie Mae HomePath property. Offer needs to be made between February 14, 2014, and no later than March 31, 2014.
- The Fannie Mae HomePath property must be in an active First Look period
- These First Look properties will be labeled with a First Look logo on Fannie Mae’s HomePath website: www.HomePath.com
- The real estate purchase must close no later than May 31, 2014
This program is only available for owner-occupied residences only and not available for second and investment properties.
Closing Costs
Fannie Mae’s 3.5% closing costs assistance program is only for closing costs credits and cannot be applied towards the down payment.
- In the event, if there are leftover closing costs credits, the balance cannot go to the home buyer and goes back to Fannie Mae
- In the event, if a home buyer has excess closing cost credits, they can use it towards buying mortgage rates down
Fannie Mae’s 3.5% closing costs assistance is similar to a seller’s concession towards a buyer’s closing costs.
Qualifying For Mortgage With Direct Lender With No Mortgage Lender Overlays
Home Buyers who need to qualify for government and conventional loans with a direct lender with no mortgage lender overlays, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Gustan Cho Associates is also correspondent lenders on the following mortgage loan programs:
- Non-QM loans where there is no waiting period after foreclosure, deed in lieu of foreclosure, short sale
- Bank Statement Mortgage Loans For Self Employed Borrowers
- Condotel and Non-Warrantable Condo Financing
Gustan Cho Associates is a national five-star lender licensed in multiple states with no lender overlays on government and conventional loans.
