Home Buying in Chehalis>Question Details

Bradley1111, Home Buyer in Chehalis, WA

What are the qualifications for a HomePath mortgage loan?

Asked by Bradley1111, Chehalis, WA Wed Nov 3, 2010

We got pre-approved for a USDA loan but we're interested in a Fannie Mae owned home & I'm wondering if the HomePath would be a better option for us? What are the credit score & debt-to-income requirements.. I read that they are stricter than FHA loans?

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14
Fannie Mae has developed a great program to help sell off some of their inventory of foreclosures. An investor can purchase a HomePath designated Fannie Mae Foreclosure* with only 10% down; if you are looking to purchase as a primary residence, only a 3% down payment is needed.

Eligible Fannie properties require NO PMI, and currently have very low interest rates! Go to HomePath.com to get a list of homes.

Highlights for available financing include:
• 97% financing for Primary Residences
• 90% financing for Second Homes and Investment Properties
• No appraisal required
• No mortgage insurance (MI) is required – although Fannie Mae price adjusters will apply
• Flexible mortgage terms – including fixed-rate, ARMs or the Interest-Only payment feature*
• Min 620 score for 80% or lower LTV
• Min 660 score for 80.01% and above LTV
• FNMA Desktop Originator/Underwriter® Approve/Eligible Required**
• Includes Condos as long as project has sufficient Fidelity, Master Hazard, and Flood (if applicable). HO6 “Walls in” Coverage also required
Max Debt-to-income ratio is 45%

* The property must be designated on HomePath.com as eligible for HomePath financing. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.

I can help you finance these properties, for more information, please contact me for additional details at http://www.ccflender.com or 866-790-6925
Web Reference: http://www.ccflender.com
4 votes Thank Flag Link Thu Nov 4, 2010
I have been approved, for buying a home, it is a Home Path property; with a conventional loan. The loan is held by a mortgage company. I am a disabled person, and want to know if the Home Path program can help me make smaller mortgage payments as disability is my only source of income.
Flag Thu Nov 14, 2013
Andrew, How likely is it that a retired unemployed individual who owns his own home outright would qualify for a homepath mortgage based off of social security income only?
Flag Sat Apr 27, 2013
1 vote Thank Flag Link Wed Nov 3, 2010
On a foreclosure when you sommit an offer and it has to be approved by Home Path what is required as to credit scores ect.. Thank you looking forward to your answer.
0 votes Thank Flag Link Tue Jan 21, 2014
what are to debt to cedit ratio
0 votes Thank Flag Link Wed Jun 5, 2013
We are another source to help:
Americash is known as one of the Nations top originators of residential mortgages. Americash pursues cost effective advertising, primarily through the internet, and passes the savings through to the consumer in the form of lower rates.
http://www.americashloans.com
0 votes Thank Flag Link Mon Dec 10, 2012
I have a SHORT SALE on my credit that happened a little over three years ago. FHA will allow this as long as it's more than 3 years. What are HomePath requirements in regards to this?
0 votes Thank Flag Link Fri Jul 27, 2012
Wjclapper there is no income restrictions.. There are on USDA loans
0 votes Thank Flag Link Tue May 29, 2012
Is there an income restriction to qualify for a Homepath mortgage?
0 votes Thank Flag Link Tue May 29, 2012
how many years after a short sale I can buy my new house?
Flag Wed Aug 6, 2014
Bradley - is the Fannie home located in a USDA eligible location? That would be my first question - you may not even have a choice. Your post sounds like you are well educated on the programs so you may already know. My thought to your question is that normally a question like this would be answered "it depends upon whether the home is eligible for USDA financing OR a Fannie Homepath." If you love the home then go for it - regardless the program. The lender that has you pre-approved for the USDA loan should be able to tell you pretty quickly whether you qualify for the HomePath or not. If they can't - find another lender. :)
0 votes Thank Flag Link Sat Nov 6, 2010
USDA is by far a better product: 100% financing with no mortgage insurance. Contrary to what others have said, HomePath is much more difficult to qualify. The credit score requirement is higher, the down payment is higher, the rate is higher, the maximum ratio of income to debt is lower (not a good thing if you need to qualify for a higher amount). Every lender is different with regard to credit score requirements because the only good thing about homepath is it allows for repair escrow up to $30,000.

USDA however, may offer a $5000 escrow repair loan that allows you to have repairs done to the house in order to qualify them for an FHA loan. The repairs must be done within 30 days of close. If you need to go over $5000, the loan will convert to a 203K loan which allows up to $35,000 in repairs or 110% of the after repair value, whichever is less. This loan can take upwards of 60 days to close (depending on repairs being done).
0 votes Thank Flag Link Thu Nov 4, 2010
Good answers below. Homepath also requires a minimum fico of 680. If you have student loan debt, even if deferred they will count it into your debt to income ratio this killed my last buyers opportunity to go homepath which is considered a conventional loan. The best thing to do is speak to your lender and see if you qualify not all lenders offer this program so find one who does.
0 votes Thank Flag Link Thu Nov 4, 2010
Hello Bradley, USDA is a zero down program whereas homepath requires 3% a little better than FHA at 3.5%. 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. Good avenue for financing the foreclosures potentially in need of repairs is the homepath renovation. Yet another low down option is looking at HUD owned homes offering $100 down and they're generally pretty aggressively priced. Sounds like you already have a lender but I would be happy to keep you notified of newly listed properties in your area if you need an agent. Alex

http://www.homepath.com/ <<-- homepath website

http://www.tenmanagement.com/listings/state.do?code=WA <<-- HUD homes
Web Reference: http://www.homes77.com
0 votes Thank Flag Link Wed Nov 3, 2010
Another big plus is the 3.5% incentives for buyers on HomePath homes closing before December 31st of this year!
0 votes Thank Flag Link Wed Nov 3, 2010
This is a myth. They are not more strict, in fact many times they are better and easier to obtain. While in some cases the interest rates are slightly higher, not having to pay PMI is a huge difference in your monthly house payment. Both USDA and HomePath have goods and bads, but it is my personal opinion that if you find a HomePath house that suits you, it can be a great thing!

Contact a HomePath lender to find out what is needed to qualify. Fred has posted a good link below for a starting point.
0 votes Thank Flag Link Wed Nov 3, 2010
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