Question regarding reserves and HomePath financing guidelines...

Asked by Abigail Bussard, Oak Park, IL Fri Feb 24, 2012

My situation - I own a 1 bedroom condo, which has been now rented out for 6 months, and is documented as rental income on my 2011 tax transcript. I'm saving money living with my brother, I am looking at purchasing a primary residence, which is eligible for Homepath financing. Can anyone explain what kind of reserves I would need to close, in addition to the downpayment...etc. I've heard everywhere from none, to 2 months, to 6 months of reserves on both properties. I will be putting 5% down. Thanks!

Help the community by answering this question:

+ web reference
Web reference:

Answers

11
Jack Lewitz, Agent, Lincolnwood, IL
Sat Mar 10, 2012
I am assuming your talking about escrow to cover taxes and insurance? Iyiu need to ask a homepath approved lender this question. I know homepath requires 3% down for owner occupants and give up to 3% toward buyer closing costs with no appraisal or PMI fees
0 votes
, ,
Wed Mar 7, 2012
Ally,

If you're still looking for a local lender, feel free to look me up, my contact info is in my profile/website.

I live in Naperville as well, isn't it a great town?! :)

-Rob
Web Reference:  http://RobWeber.com
0 votes
Joe Schiller, Agent, Chicago, IL
Fri Feb 24, 2012
there are soooooo many choices that may or may not be a better fit,, talk to my guy.. 100 million in sales experience is why I can advise you! m giganti 312-475-4193 ...do not piss around with a bunch of lenders,, stick with 1 and I suggest this one
Web Reference:  http://www.joeschiller.net
0 votes
Abigail Buss…, Home Buyer, Oak Park, IL
Fri Feb 24, 2012
And Homepath requires 2 years of rental income to qualify? I've heard 6 months, 1 year, and now 2 years...
0 votes
, ,
Fri Feb 24, 2012
Ally - I think I can answer your questions with a brief phone call if you are interested -
you can call my cell
Sam Sharp 312 217 4030
0 votes
Philip Sencer, Agent, Chicago, IL
Fri Feb 24, 2012
I would speak with Sam about the details because these things can be tricky. I have worked with him in the past and he is one of the lenders I refer clients to on my web site. I also work Naperville and am currently working in Darien/Downers Grove in case you need some help.
0 votes
Matt Laricy, Agent, Chicago, IL
Fri Feb 24, 2012
Honestly, I would speak with a lender. They will be able to speak with you about your finances and tell you exactly what you need. If you need a referral please let me know.
0 votes
Abigail Buss…, Home Buyer, Oak Park, IL
Fri Feb 24, 2012
Hi -

Thanks for the info............so what determines if a file is "Strong", your assets, or debt to income ratio? and is that 2 months reserves for both my condo and new home? Thanks again!
0 votes
, ,
Fri Feb 24, 2012
Hello Ally
This can be tricky because this is based of of underwriters discretion. You will want to plan on 2 months worth of reserves to be safe. If the file is strong you will not be asked for any. If you are interested I can run your information through the automated underwriting system and obtain an approval. This approval will tell you exactly how mouch you will need.
The homepath is a great program - I am actually a HomePath Specialist at Guaranteed Rate.
Good Luck and please feel free to contact me at anytime -
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
0 votes
Gregorio Den…, , San Diego, CA
Fri Feb 24, 2012
There are no specific reserve requirements per Fannie Mae. If reserves are required, it will be determined when your file is run through automated underwriting. When Desktop Underwriter (DU) is run, it will state what reserves if any are required. There is no way to know prior to submitting the file to DU so anyone giving you a specific answer is not knowledgeable of the guidelines.
0 votes
jeff donnell…, Agent, Chicago, IL
Fri Feb 24, 2012
You may have to meet Fannie Mae guidelines which require 2 years of documented rental income. My advice would be to talk to a mortgage lender to see how they can get you qualified. Home Path might not be available to you. If you need recommendations please contact me.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more