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