To Greg,

First off, the FNMA Homepath Renovation loan has a maximum for renovations of 30,000 or 20% of completed value whichever is less. If you have 65,000+ your you’re your mortgage officer should have directed you to look at the FHA (203K) loan. Also the FNMA REO realtor who works either direct with FNMA or for an REO company that represents FNMA should have recognized that the work needed was greater than 30,000. Unless the work that is needed to bring property up to a livable standard is less than 30,000 but the renovations you want are greater. Then in that case the home could go Homepath but not with all the renovations you would like. At the point your contractor said 65,000 you should have been directed to FHA. Now some facts about homepath; there is no MI, I don't know who is advising you but all Homepath loans require NO MI. And for Angela who writes only loans with 80% LTV or less have no MI. Be careful how you advise people, there a few programs that exist with no MI. Homepath and N.A.C.A. loans are two examples of such programs. There are only two lenders in IL that offer the Homepath Renovation loan. Although, in other states there are more than 2 lenders. There are 14 lenders in IL who offer the regular Homepath loan. As far as 3% down you must have a FICO greater than 660 to go with 97% financing. As far as the rates being higher; they are currently at around 6.25%. If you take into account that there is no MI it is the about same as a home at 5.5% with MI Now your whole payment is tax deductable. It is a good program for a specific purpose. If advised properly, one should make their offers with the full 6% in sales concessions paid for by FNMA. As the fees are high and this amount will cover all costs. You were the victim of an uneducated loan officer. Anytime one needs a program that is not a "vanilla" loan you need to make sure you contact someone with experience. Ask you Realtor for a referral, ask your friend who they like, talk to a few originators and find out who seems the most knowledgeable. After they have answered your questions, as long as the rate and points being offered are similar or close, you should apply with who you feel most confident with. Remember rate and points are important but not as important in giving the correct advice and closing the loan on the contracts closing date.

Andrew-If you have adequate credit and income that sustains getting a loan, I would be checking directly with your bank and a mortgage broker to see what program would work for you. This may or may not even be something you would want to consider once you know your most direct and simple route to owing a home or investment property.

I would be concerned if my buyer wanted to buy a property that required no appraisal. I would be suspicious of a program that my buyer claims their lender told them there was no "PMI". (Mortgage Insurance) The only loans that DON''T have PMI is if you are putting 20% down. That is in Fannie Mae's fine print. You MAY not have to pay PMI...

Take simplest and most direct route you qualify for. Even if you were to try to use this "program" it requires good credit. You still have to "QUALIFY" for the loan. So once you qualify, take the loan that costs you the lowest closing costs with the best rate.

To Greg:

I suspect you are dealing with a originator or company that has no idea how the program works. Go to another lender.

Sally W. Hamby
Pine State Mortgage
Georgia-Atlanta

Andrewk

The Home Path program is for properties currently owned by Fannie Mae. You do not have to have an appraisal and you do not have PMI. Fannie is already on the hook for the property therefore Fannie does not need an appraisal or PMI. My company is doing these loans in Atlanta. The rate is higher, but not out of site for a loan up to 97% with no PMI. Find a lender on the Fannie Mae web site and contact them for details.

The lender does not tell the buyer which repairs have to be made. We are given a cost break down by the buyer and the contractor who is to repair the property. When the repairs are completed the home must be finished. Obviously, the house must have light fixtures or steps in place that need steps.

Sally W. Hamby
Pine State Mortgage
Georgia-Atlanta

The only piece that I'd like to add is the interest rates are quite high on this loan, so it's a good idea to get a credit back from the seller so you can buy-down the interest rate with points. I believe HomePath allows for a 6% credit from the seller.

Let’s see, the Federal Government is involved, RUN FORREST RUN!

These are the same BS answers we were told going into this. With the Home path renovation also you do pay PMI and you have to pay for the appraisor, also it is 5% down not 3%. All of these bankers and mortgage people have no clue what it really is they just read off of the script the were given and tell you how great it is.

It is a horrible program!!!! There are only 2 banks the country that can do this loan. They raise your interest rate and the closing costs. They will not send an appraisor to tell you what needs fixed until you have truned the water on and had a contractor come out and estimate what needs fixed(but you dont know what needs fixed until the appraisor goes out there). We had to fix the water pipes $800, pay past water bill $400, get survey $500 so on and so on at this time we have paid $5000 in all of the back bills and fines and another $2000 in escrow. We finally got he appraisor ordered today, so in another week we will find out what all we need fixed. Our contractor came in at $65,000 for the repairs we found, they will only cover up $30,000 with this program. If everything needs fixed that we found we will have to put down $60,000 total cash down by closing time.

We feel trapped and misinformed about this entire program.

RUNAWAY FROM THIS PROGRAM!!!!!

Andrew.

The Fannie Mae HomePath Renovation program is specifically for borrowers who are purchasing Fannie Mae real estate owned properties requiring moderate renovation. Renovation costs cannot exceed
20% of the estimated completed value of the home. Eligible properties can be located at http://www.homepath.com. Mortgage insurance is not required.

Qualification is similar to that of any other type of mortgage loan. As a Loan Officer of Flagstar Bank, I can help you with financing for this purchase. For more information please email me at patrick.anderson@flagstar.com.

How can I qualify for a homepath renovation Mortgage financing. I live in chapel hill North Carolina./

Andrew,

I see the home you wanted to look at is under contract. Please let me know if I can help you find an alternative property that will meet your requirements. Thank you.

Hud and fannie mae are basically the same thing. Great program to buy homes.

You can find the information/approved lenders and see the available homes here....
http://reosearch.fanniemae.com/reosearch/

http://www.fanniemae.com/homepath/financing/index.jhtml

Hi Andrew,

HomePath® Mortgage Financing

This special financing is available on Fannie Mae homes with the Homepath Mortgage, Renovation Mortgage logo:

The benefits include:

* Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
* You may qualify even if your credit is less than perfect
* Available to both owner occupiers and investors
* Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a
nonprofit organization, state or local government, or employer
* No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance)
* No appraisal fees
* Also eligible for HomePath Renovation Mortgage (see details below)
* HomePath Mortgage financing is available from a variety of lenders - both local and national.


HomePath® Renovation Mortgage Financing

This special financing is available on Fannie Mae homes with the Homepath Renovation Mortgage logo:

Available only on homes you make your primary residence and offers these benefits:

* Financing to fund both your purchase and light renovation
* Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
* Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
* No mortgage insurance*
* HomePath Renovation Mortgage financing is available from several lenders.

You can check out more information at http://www.fanniemae.com/homepath/financing/index.jhtml

I work with many investors and deal with homes like these often. I can help get you into one of these homes to live or to invest in for a great deal. My number is 303-856-8980.

Thanks,

Ethan

Andrew,

Homepath is a Financing option direct with Fannie Mae, You would need to contact a Fannie Mae direct lender to get all the details as there is more than just one option with these homes. You can view all of the homes this finacing is available for at http://www.homepath.com and a lender that our team works close with on these deals is Matthew, with CB Home Loans. His number is 303 409 6176

Hi Andrew,

Thank you for your question. Here are the basics of the program.

This special financing is available on Fannie Mae homes with the following logo:

The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.

Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.

I will be pleased to assist you in finding a qualified home and a lender to work with. Please let me know how I can best help you at this time.