HomePath Renovation Mortgages

HomePath renovation mortgages enable mortgages to be obtained on a house that otherwise may not qualify for financing. The expense of repairs may be added to the loan balance, making buying the house more affordable. The following is useful information on HomePath renovation mortgages.

What Properties Qualify

In general, HomePath mortgages are strictly offered for properties owned by Fannie Mae. There are normally a wide range of lenders approved to offer HomePath mortgages. Houses requiring light to moderate renovation may also use special HomePath renovation mortgages. This is normally mentioned in the listing remarks.

Qualified Borrowers

In addition to a property being approved for HomePath mortgages, borrowers must also qualify. Criteria typically includes certain debt to income ratios, minimum FICO scores, etc. Speak with a lender for information on this.

Details on HomePath Renovation Mortgages

HomePath renovation mortgages include some useful features. Buyers can submit a down payment as low as 5%. Furthermore, down payment funds can be personal funds, a grant, a gift, or even loaned from specific approved organizations. Fixed and variable interest rate alternatives are available. No mortgage insurance is required, which can save borrowers significant cost. Lastly, seller concessions are also allowed.

An appraisal is required to determine what the end value of the real estate will be once repairs are completed. The amount of the mortgage will include the purchase price and expense for the work to be completed. Renovation costs can be as high as $35,000 or 35% of the value of the home once completed.

More On HomePath Mortgages

If you are looking into buying a Fannie Mae house that qualifies for HomePath financing, you should speak with an approved lender as soon as possible. Your lender will furnish more detailed information on whether you may use the mortgage and what the specific terms will be. This will help you decide if the home will be financially optimal. For additional details on this and other similar topics, contact Jeanne Umbrello at Wal-Lex Realty at (781) 894-4321 or jeanneumbrello@hotmail.com.