Yes, this program is still available. The property has to be Fannie Mae owned, and also qualify/be eligible for the renovation loan program. You can't just apply for this type of financing on any property.
In terms of the Fannie Mae-owned properties, generally they offer 2 types of ownership/financing programs, each with unique benefits.
HomePath - low down payment, no PMI, and no appraisal needed.
HomePath Renovation mortgage - one loan includes the funding for the purchase and renovation - up to 35% of the completed value of the improvement (no more than $35,000). This loan product is available for investors, and owner-occupants.
Freddie Mac offers a program called "HomeSteps" - which basically offers financing benefits similar to the HomePath program.... more
I'm speculating as to why, but I do know for a fact that when they pull your husband's credit history, they pull yours as well on anything you own jointly. So I think they are looking for assurance that the debt will be repaid. I am wondering if such a letter would survive divorce as well; only an attorney could answer that.
Karla Harby, VP
Charles Rutenberg Realty
I recommend that you talk with several mortgage brokers about your situation and see what they can do for you. If you find them in the phone book or online, it is always a good idea to check that they are reputable by checking for complaints with the Better Business Bureau.
Matt, A good resource for this will be your local Realtor. We deal with various lenders all the time and have experience with good ones and bad.
Another alternative is to check out the web. I have a link below to several Albany County loan officers who are members of Active Rain, a real estate blogging community. You can go from this site to their individual blogs and read some of what they are posting to find out about them.
I'm a Realtor and Mortgage Broker, using a good broker can be advantageous to provide a variety of programs and wholesale rates. Best of luck with your purchase.... more
You should consult with a lender who can assess your personal financial profile. Did your freelancing and consulting work that was related to your line of work produce an income that was comparable to what you were earning as an employee? If so, perhaps it will be treated as self employment. You may have to provide your lender with documention just as any other self employed applicant would. Good Luck.... more
Right now, from what I've seen, 10% is the minimum down payment for second homes. Some lenders may require more down depending on the area you buy the property. If the property is in a declining area, the down payment could be more. You may also obtain an interest only loan for 10 of the 30 years (rate is higher). You may be able to go through a credit union or small community bank for a 95% loan or get the credit union to offer you a second mortgage for the difference. Remember that the loan on the second home, your primary home (if there is a loan) and expenses on credit report will count towards your income to qualify for the property. Make sure the Loan Officer knows that you plan on living there 6 months out of the year...hint hint..... more
You may ad your husband to the loan during the refinance aand use your combined income, but you will also ad his credit file to the process. If his credit has not improved you may still have issues with the refinance.... more