HomePath is very simple and straight forward. It is for Fannie Mae owned REO only. If you are financing 80% LTV = 660 fico. All other requirements are per DU findings.
There is no appraisal required nor mortgage insurance regardless of LTV.
Here are some other elements of HomePath:
The following sources are eligible when LTV/CLTV exceeds 95%:
- Gift Funds from acceptable donors.
- Grants from a borrowerâ€™s employer, public agency, or nonprofit organization, provided no repayment is required or
-Secured loans from a relative, domestic partner or fiancÃ© that comply with the following:
ï‚· The loan must be a fixed rate loan at an interest rate not to exceed the note rate of the mortgage by more than
ï‚· The loan can require a balloon payment provided it is not within the first five years of the loan.
ï‚· The borrower must provide a document that is signed by the note holder that identifies the note holderâ€™s name,
address, relationship to the borrower, and the terms of the loan; and
ï‚· The note holder cannot be an interested party to the transaction, nor can the note holder obtain the funds to
lend to the borrower from an interested party to the transaction.
Secured loan from an employer, public agency, or nonprofit organization, not including credit unions;
ï‚· Must be documented with an award letter or legal agreement from the note holder and must disclose the terms
and conditions of the loan.
In all circumstances described above, evidence of the transfer of the funds to the borrower is required.
All in all, I love the HomePath. As a Fannie Mae preferred lender, we can fund in 8-10 days.
If you have any additional questions, please feel free to email me at firstname.lastname@example.org or just call me tomorrow at 916-813-4003.