It's called "down payment", and it's only available for Fannie Mae Bank Owned homes. A few details of this program are outlined below:
· Second Home/Investment requires a 10% down payment! (Practically every loan requires 20-25% down!)
· Owner Occupied is a 3% minimum down payment; however, California requires 5%.
· No Appraisal Required! Property is acceptable as-is!!!
· No Private Mortgage Insurance (PMI)! Meaning, you can qualify for a little more home!
· You do not need great credit (typically, you will need at least a FICO of 660+, but can go as low as 580 with a 20% down payment).
· 1-4 unit homes, Condo’s, PUD’s, Modular, and Manufactured (Double Wide) are all all right.
· Fixed Rate, ARM, Interest Only, 10yr, 15yr, 20yr, 25yr, and 30 yr options.
· Up to 6% seller concessions! (2% for investors)
· Down Payment can be a gift, a grant, or a loan from a nonprofit organization, state or local government or employer.
· Up to 10 financed residences are welcome (If you own 5-10 homes, you'll need six months in reserves for each home you own, plus the one you want to buy).
· Conventional Rates.
This is a great program. There only a few problems with HomePath, which are 1) There's a very small number of these homes, and 2) There are very few Fannie Mae approved lenders (I know of 3). Other than that, this is the way to go for any real estate investor who wants more leverage in their investment, by only putting down 10% down.