Financing in 40475>Question Details

Frok, Home Buyer in 49024

Fannie Mae owns the property I am looking to purchase. underwriter says 2nd appraisal needed. Is it true on Fannie Mae owned properties?

Asked by Frok, 49024 Tue Feb 28, 2012

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If you are using conventional financing you really should be getting a Fannie-Mae Homepath loan – assuming the property is eligible; Homepath loans do not need an appraisal. However, if you are using other financing – FHA, VA, USDA, etc. - a second appraisal is very possible.
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1 vote Thank Flag Link Wed Feb 29, 2012
First, check to see if this is a Homepath home, a foreclosure specifically owned by Fannie Mae and listed on their Homepath website. (You can search for the property, but it's possible that it was taken off the site once you were under contract to purchase it. You can also check the original MLS listing to see if it mentions Homepath.)

Homepath homes qualify for a special loan program in which no appraisal is required. (There is also no monthly mortgage insurance, even if you do not put 20% down.)

That being said, I have had several buyers not qualify for Homepath loan credit score and debt-to-income guidelines. In those cases, we used an FHA loan, which does require an appraisal regardless of who owns the home.
1 vote Thank Flag Link Wed Feb 29, 2012
There should not be an appraisal needed at all if this is a home path property.I would check with the lender and find out the reason for second appraisal.If property is not home path they could request second appraisal but to be safe ask lender the reasoning,
0 votes Thank Flag Link Wed Feb 29, 2012
No, I do not think that is correct. What are the details? You need to ask your Loan Office why the second apraisal is needed? If this is a Home Path property and you use a Home Path loan no appraisal is required. If the UW is calling this a flip property that would bring on the second apraisal, but if owned by Fannie Mae t is exempt from flipping guidelines.
0 votes Thank Flag Link Tue Feb 28, 2012
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