Asked by Andrew, Denver, CO Tue Apr 14, 2009

what does it take to qualify? what kind/extent of renovation is covered?

Help the community by answering this question:

+ web reference
Web reference:


, ,
Thu Nov 4, 2010
Homepath Renovation: Step by Step

Only available on properties acquired from Fannie Mae that require moderate renovation and designated by Fannie Mae on the http://www.homepath.com website as eligible for HomePath Renovation financing. Lender must document the file with appropriate pages printed from http://www.homepath.com showing that the property was eligible for HomePath financing.

Borrower must be an individual, US citizen, permanent resident alien or non-permanent resident alien.

1-4 unit owner-occupied principal residences only. Second homes, investment properties, manufactured homes, condos and co-ops are not eligible

1-unit owner-occupied 97% max loan to value 2-4 units 75% max loan to value

The LTV is calculated from the LESSER of the purchase contract plus the total renovation costs (which includes renovation costs and required contingency) or the “as- completed” appraised value.

Full “as-completed” appraisal required.

The renovations must be completed within six (6) months after the closing date.

Total Cost: The total renovation costs, including contingency, may not exceed the LESSER of 20% of the “as completed” appraised value or $30,000.00. No work can be started prior to closing. Rehab solely for foundation work is not permitted. Any foundation repairs may require a licensed foundation contractor.
Borrower may use more than one contractor; however, additional doc prep charges may apply. Each contractor must submit a Contractor Questionnaire, be accepted by the lender for the program and provide a W-9. Do-it-yourself projects are not eligible.

Do-it-yourself Projects. “Do-it-yourself” borrower projects are not allowed.

Renovation Escrow Account. Funds for renovation will be placed in an insured, interest-bearing account.

Minimum Credit score required is a 660

Max Debt to Income allowed is 45% (may allow up to 50% with strong compensating factors)

Mortgage Insurance is not required; however loans with LTV’s over 80% are subject to applicable loan-level pricing adjustments.

Loan Terms are 30 year fully amortized fixed rates ONLY (No balloons; ARMs; Interest-only)

Escrow deposits for taxes and insurance will be established at closing. Borrower must provide paid-up first year’s homeowner insurance policy as a requirement of loan closing.

Contractor: Contractors must be licensed and/or registered as required by individual
State and/or local guidelines. All contractors must meet credit and reference guidelines as established from time to time by Construction Loan Committee and in accordance with FNMA HomeStyle guidelines. A Contractor Questionnaire must be filled out and signed by the business principal and include vendor and homeowner references related to the proposed project(s).

Contractor Questionnaire: Contractor(s) must be designated for the construction project. The contractor(s) must complete a Contractor Questionnaire. Include a complete Questionnaire and send to the Construction Lending Department. Contractors must be registered or licensed in accordance with applicable state laws.

Multiple contractors may be allowed on a case-by-case basis. All contractors must provide a completed Contractor Questionnaire and W-9 tax information.

Agreed Contract: Borrower must enter into a written contract with each contractor who will be performing some or all of the work. Each contract must include (1) the total amount to be paid to the contractor for the work, (2) a description and itemization of the work, (3) the timeframe needed to complete the work and (4) agreement by the contractor that the work will be completed within three (3) months of the closing of the loan

Appraisal: Appraisal to be subject to completion of improvements. Appraiser must reference the existing condition of the property and specify the work to be done in detail. The appraiser must be provided contracts as described above indicating a description and itemization of the work.

NO Cash-out: Borrower’s closing statement cannot show any cash to Borrower.

Draws: Draws will be sent by Lender to Contractor. Draw requests must be signed by both Borrower and Contractor before submitting to Lender.

Completion: All improvements must be completed in 3 months from closing. A 30 day extension fee of $750 will be charged to Borrower for non-completion. An additional $750 will be charged for each additional 30 days.

I hope this answers some of the questions the Trulia community has about Homepath Renovation. for more information about Homepath visit http://www.ccflender.com

Andrew Martinez
Commercial Capital Funding
Web Reference:  http://www.ccflender.com
28 votes
Thank you Andrew! This information will help me explain the details of the improvement process to my buyers. Marilyn Gallagher, Associate Broker, Chicago, IL
Flag Fri Sep 5, 2014
Great Answer
Flag Thu May 22, 2014
Thanks for the great info, Thank you for taking the time for such an exact answer1 Very helpful!!! Do you lend ffor properties in Florida? I'd be interested in working with you.
Flag Sat Apr 19, 2014
What a detailed explanation. This answer provided a lot of incite on Homepath Renovation. II got all my questions answered.
Flag Fri Jan 17, 2014
Wow Andrew, what an exact and informative answer! Thank you
Flag Mon Nov 18, 2013
Great Answer Andrew!
Flag Tue Oct 8, 2013
Thanks Andrew. Great, informative post.
Flag Mon Dec 10, 2012
ryateslenders, Agent, Plano, TX
Sat Sep 28, 2013
As low as 3% down and up to 35k for renovations.. I can recommend a few lenders that can help with Home Path.
39 votes
Thanks Randall! The Lenders Network found us a lender to approve our loan when no other bank would. A++++++++++++++
Flag Mon Jun 15, 2015
Lenders Network stop spamming Trulia
Flag Wed Nov 13, 2013
Ethan Besser, Agent, Englewood, CO
Tue Apr 14, 2009
Hi Andrew,

HomePath® Mortgage Financing

This special financing is available on Fannie Mae homes with the Homepath Mortgage, Renovation Mortgage logo:

The benefits include:

* Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
* You may qualify even if your credit is less than perfect
* Available to both owner occupiers and investors
* 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
* No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance)
* No appraisal fees
* Also eligible for HomePath Renovation Mortgage (see details below)
* HomePath Mortgage financing is available from a variety of lenders - both local and national.

HomePath® Renovation Mortgage Financing

This special financing is available on Fannie Mae homes with the Homepath Renovation Mortgage logo:

Available only on homes you make your primary residence and offers these benefits:

* Financing to fund both your purchase and light renovation
* Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
* Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
* No mortgage insurance*
* HomePath Renovation Mortgage financing is available from several lenders.

You can check out more information at http://www.fanniemae.com/homepath/financing/index.jhtml

I work with many investors and deal with homes like these often. I can help get you into one of these homes to live or to invest in for a great deal. My number is 303-856-8980.


20 votes
, ,
Fri Jul 16, 2010
Bottom line,

There are only two lenders in the country that do Renovation loans and none of them are the big 4 banks. If you want to see the underwriting guidelines and see the requirements of the program in writing email me and I will send them to you. If someone is talking to you about HomePath Renovation ask the broker/bank who is funding the loan and if the answer isn't Flagstar or Colonial Savings or I don’t know I would be fearful.
Also ask how many Renovation loans the loan officer you’re working with has actually closed. Talking about the loan program and having experience closing these types of loans are two drastically different things.
Web Reference:  http://ccflender.com
13 votes
Mark Kinslow…, Agent, Centennial, CO
Tue Apr 14, 2009

Homepath is a Financing option direct with Fannie Mae, You would need to contact a Fannie Mae direct lender to get all the details as there is more than just one option with these homes. You can view all of the homes this finacing is available for at http://www.homepath.com and a lender that our team works close with on these deals is Matthew, with CB Home Loans. His number is 303 409 6176
12 votes
Josh, Home Buyer, 78523
Thu Sep 22, 2011
I doubt Andrew's question from 2009 is still being read by him. This self promotion with out bringing anything new to the topic is ridiculous. All its doing is taking away from the relevant content that provides knowledge on the subject. Other then the responses by Troy Betsinger & Andrew Martinez I took nothing away from the numerous responses other than self promotion. Go buy an AD and leave the blogs to content that helps homeowners!!
10 votes
Nurtzkid, , Minneapolis, MN
Fri Feb 12, 2010
Greg from Evanston --

You missed the greatest part of this program through simple ignorance. The program gives multiple advantages -- generally low cost for the properties, no mortgage insurance, various mortgage options,
several credits available (for closing or required appliances) and so on. You get these advantages because the property has been forclosed and is being held by FNMA, which doesn't manage, repair, or inspect property.

To them, it's a pig in a poke. They know how much they lost on it, and nothing else.

If the buyer isn't pig ignorant, he/she pays an inspector $300 or so to inspect the property BEFORE making an irrevocable offer. If there are big problems, the buyer goes back with a contractor and gets estimates, and them makes an offer based on greater knowledge than the seller has. The buyer has all the advantages.
Unless the buyer is pig ignorant, and makes an offer knowing nothing.
8 votes
Rshuckleberry, Home Buyer, Los Angeles County, CA
Fri Oct 29, 2010
Homepath Renovation is a scam. That's what it is. It is a terrible, terrible, disgusting, cruel, vicious despicable scam. Whatever the cost of the property is that you're looking at--add at least $30K to it. The lender, Flagstar or one of the other two lenders that do this type of loan, will ask YOU, yes YOU the buyer , what YOUR best guess is on repairs in order to "make the house liveable." Whatever you tell them is irrelevant. The lender will go back to the listing agent on the property and then ask them, and that estimate will be at least $20K to $30K. That amount is then added to the sale price of the house and therefore your loan, too. So you look at a house for $200K, think you're going to pay 3% down with them covering 3% to 6% of closing and then they add $30K to it and you're faced with a $230K house and drastically increased dp and closing. Whatever cost they say has to be repaired, HAS to be repaired. And it has to be repaired by THEIR contractor, BEFORE CLOSING. Homepath is a ripoff, a scam, the lenders and listing agents for a homepath property are liars and scam artists. Just walk away.
7 votes
Jeffrey Manc…, , Boston, MA
Thu Oct 8, 2009
To Greg,

First off, the FNMA Homepath Renovation loan has a maximum for renovations of 30,000 or 20% of completed value whichever is less. If you have 65,000+ your you’re your mortgage officer should have directed you to look at the FHA (203K) loan. Also the FNMA REO realtor who works either direct with FNMA or for an REO company that represents FNMA should have recognized that the work needed was greater than 30,000. Unless the work that is needed to bring property up to a livable standard is less than 30,000 but the renovations you want are greater. Then in that case the home could go Homepath but not with all the renovations you would like. At the point your contractor said 65,000 you should have been directed to FHA. Now some facts about homepath; there is no MI, I don't know who is advising you but all Homepath loans require NO MI. And for Angela who writes only loans with 80% LTV or less have no MI. Be careful how you advise people, there a few programs that exist with no MI. Homepath and N.A.C.A. loans are two examples of such programs. There are only two lenders in IL that offer the Homepath Renovation loan. Although, in other states there are more than 2 lenders. There are 14 lenders in IL who offer the regular Homepath loan. As far as 3% down you must have a FICO greater than 660 to go with 97% financing. As far as the rates being higher; they are currently at around 6.25%. If you take into account that there is no MI it is the about same as a home at 5.5% with MI Now your whole payment is tax deductable. It is a good program for a specific purpose. If advised properly, one should make their offers with the full 6% in sales concessions paid for by FNMA. As the fees are high and this amount will cover all costs. You were the victim of an uneducated loan officer. Anytime one needs a program that is not a "vanilla" loan you need to make sure you contact someone with experience. Ask you Realtor for a referral, ask your friend who they like, talk to a few originators and find out who seems the most knowledgeable. After they have answered your questions, as long as the rate and points being offered are similar or close, you should apply with who you feel most confident with. Remember rate and points are important but not as important in giving the correct advice and closing the loan on the contracts closing date.
6 votes
brianl, Home Buyer, Denver County, CO
Fri Oct 4, 2013
This is a very old topic and the question was asked back in 2009. Stop all the self promotion. Look at all these recents comments from hungry loan officers with no loans to work on so they go to Trulia and answer questions that are 4 years old. LOL

Get part time jobs at Walmart
5 votes
Keviny22, Home Buyer, San Diego County, CA
Thu Jul 15, 2010
I am a homeowner going through a Homepath Renovation Loan, here are some facts I found.

Max amount given is only 27,000 because they want to keep a 3,000 buffer for unexpected things.

You pay no PMI, but you pay a higher rate.

Lenders will typically charge you more points (mine is taking one on the front and one on the back) to cover the additional costs and effort into doing the renovation loan. They seem to be less flexible with lowering rates or adjusting yield spread (the amount the bank pays them).

You must find a general contractor who is willing to work with the lender on the renovation loan. A two party check is issued to the contractor at different phases of the construction.

The contractor must put together a detailed bid prior to loan approval outlining the work and the cost of each item. I think contractors pad their charges higher because of the additional paperwork overhead. This also means you have to know exactly what you want done (paint colors, carpet type, etc) prior to the loan closing.

Unlike the regular HomePath loan which does not require an appraisal, the renovation loan requires an appraisal. The appraisal values the house after repair. For example, a house valued at 400,000 after repairs would need to sell at 400,000 - 27,000 = 373,000 house purchase price. (the bank wants to know that if you walk away from the house after the repairs, they will be able to get 400,000 for the fixed house).

I am not an expert, just sharing my experience.
3 votes
Dennis Quinn, , Broomfield, CO
Tue Apr 14, 2009
Hi Andrew,

Thank you for your question. Here are the basics of the program.

This special financing is available on Fannie Mae homes with the following logo:

The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
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
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.

Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.

I will be pleased to assist you in finding a qualified home and a lender to work with. Please let me know how I can best help you at this time.
3 votes
Pat Anderson, , Livonia, MI
Tue Jun 30, 2009

The Fannie Mae HomePath Renovation program is specifically for borrowers who are purchasing Fannie Mae real estate owned properties requiring moderate renovation. Renovation costs cannot exceed
20% of the estimated completed value of the home. Eligible properties can be located at http://www.homepath.com. Mortgage insurance is not required.

Qualification is similar to that of any other type of mortgage loan. As a Loan Officer of Flagstar Bank, I can help you with financing for this purchase. For more information please email me at patrick.anderson@flagstar.com.
2 votes
George R Ka…, , Vacaville, CA
Sat Sep 22, 2012
Basically between your acquisition price and the current market value is the amount that you can renovate the home, so if you bought a home for 150k dollars in and it appraises for 175k you have approximately 25,000 to use. As an owner occupant you can actually do with as little as 3 percent down. The rate and pricing is extremely FICO score sensitive! Qualifying is basically the same as any other loans, you have to make sure that your ratios in your scores are adequate to qualify.
1 vote
djw, Home Buyer, Malabar, FL
Fri Sep 21, 2012
My Lender is saying that because I have a Homepath Renovation Loan (with less than $1,000) in renovations, I have to pay for the Lender to get an appraisal...With Homepath they advertise NO Appraisal or MI. Also getting a high % rate of 4.265...This all seems high...where is my thinking wrong? Help
1 vote
Jack, Home Buyer, Orlando, FL
Mon Nov 21, 2011
In applying for a Homepath Renovation Loan and speaking to a Fannie Mae representative directly, the most important thing that I came to realize is that Fannie Mae only sets "guide lines" for the lenders to follow. Individual lenders are free to follow "more strict" rules. So if Fannie Mae requires a credit score of say 620, a lender is free to follow a stricter guideline and require a 700, as an example. This carries over to downpayments, renovation loan amounts, contractors, etc. Overall, the requirements imposed by lenders increase the cost of construction and do little to actually help people renovate and repair their new homes.
1 vote
We're trying to apply for hompath renovation loan to buy a house, but after having read your post, we have the concern if we would be able to qualify. :(
Flag Wed Mar 21, 2012
Pat Anderson, , Livonia, MI
Tue Sep 20, 2011
The HomePath 'incentives' are just marketing fluff. They say that they will pay 3.5% of the sales price towards closing costs - but you must ask for them in advance. What they don't tell you is that they will actually pay up to 6% towards your closing costs if you ask for them. If you need the money, ask for the 6%! The real incentive available is the extra $1200.00 that they pay the selling real estate agent. As for the HomePath renovation loan, in my experience as a Loan Officer, the buyer is better off with an FHA 203k rehab loan for borrowing additional money for repairs/upgrades/renovation. The FHA loan is less costly, more lenders can do it, and the interest rate is better.
1 vote
Terry Maines, Renter, Escondido, CA
Tue Sep 20, 2011
Some other items I have noticed while looking into Homepath:
-First Look homes, which are trumpeted for neighborhood stabilization seem to be overpriced by about 10%- at least in the San Diego area.
-While you do save the MI costs, some of this is negated by the increased interest rates on the loan. Almost a full 1% on renovation loans. If you do not refi this loan, you will pay much more over the 30 year life of the loan.

Ultimately, Fannie seems to be targeting investors. I believe they simply want to get these houses off their books. We made an offer on one house, that had been on the market for over 100 days ( a long time in SD) and had been reduced to a somewhat reasonable price poin. We were rejected without a counter. The offer was about 3% under the asking price. A week later, fannie accepted an investor cash offer for less than our offer (I am in the process of confirming the final amount but believe it to be true).
So while there are some good things in this program remember, if it sounds too good to be true....
1 vote
NA, , Hudson, NH
Wed Jun 29, 2011
GREAT NEWS! The Fannie Mae HomePath program incentive for buyers and their agents has been extended! 3.5% closing cost allowance for approved buyers and $1200 for their agent! Remember; stay informed, do your research, retain an agent with EXPERIENCE in this area and mostly, obtain a mortgage loan officer with extensive experience and this can truly be an amazingly wonderful dream come true for you if you're approved! Seriously, I consider myself very informed while also objective and open minded at the same time and I can tell you honestly that this program is a heaven sent when properly orchestrated by a team of sincere, customer-focused professionals. Don't listen to the cynics and nay-sayers! To see the announcement and also Fannie's site with all the info you need please see:


Or, if you'd like, call me! I'm here to help, not only in New England but nationwide!

Jamie Woods
Community Banker
Home Savings of America
Member FDIC/Equal Housing Opportunity
225 Derry Rd
Hudson, NH 03051
Serving New England and all 50 States
Blog: http://www.abrightsunshineyday.blogspot.com/
1 vote
susan w., Home Buyer, Roseville, CA
Wed Mar 30, 2011
HomePath Renovation loans can be used for primary, second homes and investment properties. Minimum credit score is 680. Depending on the occupancy the maximum loan to value varies: on a primary residence you can do a 97% loan to value but on an investment property the maximum is 85%.

The maximum reapirs escrow is the lesser of 35% of "as-is completed appraise value or $35,000 whichever is less. Allowable repairs must be permanent to the property and add value to the home. Renovations can include repairs and cosmetic improvements such as fences, decks, floors and finishes.

Some itmes to note: you must hire a contractor (no do it yourself projects) and you have 60 days after the close of escrow to finish the work.

PrimeLending not only can help you on the HomePath Renovation and HomePath Mortgage loans but we offer all the other loans as well: 203k streamline and full, HomeStyle Renovation loans and Escrow Holdbacks. We are your one stop Renovation loan experts.
Web Reference:  http://www.LouiseBuford.com
1 vote
Sally W. Ham…, , Atlanta, GA
Wed Mar 30, 2011
If you purchase a HomePath designated property and the home needs repairs, you can use a HomePath renovation loan for the property. You can add the repairs to the mortgage and the loan amount is calculated off the as repaired price as long a the home appraises for the amount including the repairs.

Get loan. No PMI.

Sally W. Hamby
Senior Mortgage Banker
Fidelity Bank Mortgage
1 vote
David Zucker…, , Frederick, MD
Sat Feb 5, 2011
Fannie Mae Increases Allowable Renovation Budget on the HomePath Renovation Loan

Fannie Mae has improved the HomePath Renovation loan program by increasing the renovation budget to the lesser of 35% of the "as completed" appraised value or $35,000. Previously Fannie Mae limited the HomePath Renovation loan program to the lesser of 20% of the "as completed" appraised value or $30,000.

The HomePath Renovation budget includes not only the contractor invoice cost of the repairs, but also the contingency reserve and other soft costs such as permits. The contingency reserve is only required when putting down 5% or less.

This increase is particularly beneficial for lower priced homes, which were being limited on the size of the renovation project by the 20% of the "as completed" appraised value.

To calculate your HomePath Renovation budget a new online HomePath Renovation Calculator is now available for primary residential purchases at http://www.homepath-renovation.com. Investors can also use the HomePath Renovation loan program but need to put down 25% as a down payment.

To determine if you qualify for a HomePath Renovation Loan you can contact HomePath-Renovation.com at (866) 351-3229.
1 vote
Dan Steinberg, , Los Angeles, CA
Tue Nov 30, 2010
This is a very helpful thread. Especially Keviny22's reply.

One thing I'm not clear about is the following: Between the close of escrow and the completion of home repairs, does the buyer start the monthly mortgage payments? Seems strange to wait months to move into the home due to it being uninhabitable, therefor having to pay to live in a rental and paying a mortgage at the same time for a home that can't be lived in.
1 vote
Tammy Hayes, Agent, Port Charlotte, FL
Fri Oct 29, 2010
HomePath® Renovation Mortgage Financing

This special financing is available on Fannie Mae homes with the following logo:

Available only on homes you make your primary residence and offers these benefits:

•Financing to fund both your purchase and light renovation
•Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
•No mortgage insurance*
•HomePath Renovation Mortgage financing is available from several lenders.

Web Site: http://www.fanniemae.com/homepath/financing/index.jhtml
1 vote
Chelly, Home Buyer, Indiana
Thu Jul 15, 2010
I for one am even more confused about this type of loan. My main question is how perfect does your credit score really have to be? I am one of the millions that have been layed off etc so my score has suffered. Now I find the perfect home and this is the only type of loan they will allow. So can a person with low scores have a chance of getting approved?
1 vote
Jeffrey Manc…, , Boston, MA
Mon Mar 1, 2010
There are only two lenders who do Renovation loans, Flagstar Bank and Colonial National Mortgage, a Division of Colonial Savings, F.A... You would only be able to do work if you were a licensed contractor. A builder package must be submitted and approved prior to close. All work is done after close. Money is held in escrow plus a 10% reserve and given out in installments (# of draws decided prior to close). Remember ask which repair items are required to be fixed. FNMA has had an FHA appraisal done to determine that the property has to go as a Homepath Renovation otherwise they are marketed as regular Homepath. This is an appraisal done for FNMA and you will probably not get a copy even if asked but they will usually tell you what is causing it to be renovated
1 vote
Denver Realt…, , Denver, CO
Wed Feb 24, 2010
Does anyone know if the home buyer can do the renovations himself? Can he live there while completing the renovations? And do they need to be completed before closing?

I'm new to this particular loan but my client wants a house that is qualified for the program and won't take his FHA loan.

Kelly L. Bailey

1 vote
MODUS Real E…, Agent, Denver, CO
Mon Feb 22, 2010
Hi Andrew-

Homepath advertises the renovation program, but I am yet to find a lender here in CO that will write the renovation piece. I have however written several of the FHA 203k streamline loans which allow up to $35k in renovation expenses, but you will have to pay mortgage insurance on an FHA loan. I have also worked with buyers who wanted to bid FHA on a Homepath property and the listing agent has been hesitant to accept an FHA bid. This is mostly due to certain Homepath properties needing a ton of work and the agent thinking that the home will not get to FHA standards even with the renovation funds. Hope this helps and best of luck in your search.
1 vote
the reason al the lenders here user homepath RENO is because they are either working for a small bank or broker that does not have the ability to do fannie mae homestyle much better product... and what all this about no MI on homepath?? anything above 80%ltv has MI its lender paid and premium priced into the rate..
Flag Sat Nov 23, 2013
Voices Member, , Benton County, OR
Tue Apr 14, 2009
You can find the information/approved lenders and see the available homes here....

1 vote
Rollin Gosney, Agent, Youngstown, OH
Sun May 25, 2014
This Renovation loan is actually available for investors also. This is not just for primary residence. 5% down is the new requirement. Total repair amount is no more then $35,000.
0 votes
, ,
Thu May 1, 2014
Tyrone, it's true. However, buyers do come back to review older posts if their question is the same, regardless of the age of the post.

Perhaps the reposting is a bit over zealous as his answer does dominate, often. Albeit effective in its placement.

I am local in Florida Tyrone if you need assistance with purchasing a Fannie Mae HomePath home...
I also do both, the HomePath Renovation loan and the regular HomePath loan. But also the HomeStyle Renovation loan and the FHA 203(k) loans.

Sincere regards,
Dennis Hearing
Renovation Loan Specialist
NMLS 892525
The Mortgage Firm
0 votes
jeff, Home Buyer, New Albany, KS
Sat Feb 22, 2014
Tony Betsinger the Spammer is Back adding nothing new as usual.
0 votes
Tyrone, Home Buyer, Washington County, FL
Sun Jan 12, 2014
Troy Betsinger is business that slow for you you have to continue to post to a question that is 4 years old.

The purpose of Trulia isn't for self promoting.
0 votes
Ritchy Haynes, , Denver, CO
Fri Oct 4, 2013
It is a loan with 3% down and no mi that will allow for you to add an escrow account to make repairs and improvements to the home. Generally it works best with higher scores otherwise you may want to just look at an FHA 203k.
0 votes
Add something new to the topic. Really only need 3% down? Wasn't that said about 100 times.
Flag Fri Oct 4, 2013
Denise Olson, Home Buyer, Pewaukee, WI
Thu Oct 3, 2013
Fannie Mae's HomePath Renovation Mortgage financing is financing that is spectic to and only to Fannie Mae HomePath listed houses You can only use this renovation loan with the HomePath listed properties. However if a property is a HomePath Renovation listed property whereby HomePath Renovation has to be used per the listing, you don't have to use the HomePath Renovation product. You can use ANY qualified Renovation product. Our company has a dozen renovation products. I use a variety of different renovation products for HomePath Renovation homes. It just depends on what the borrower qualifies for and what the property needs. I always like to pick the path of least resistence to make the process as smooth as possible and to make sure the loan product meets the borrower needs. HomePath Renovation is a great product as well. You have to have a 660 minimum credit score with HomePath Renovation. We do have a credit correction program that helps borrowers to improve score to meet that need. Renovation could be anything from carpet, furnace, roof, windows, cabinets, baths, HVAC, plumbing, siding. The list is very long. The appraiser for the lender will determine what HAS to be done. The borrower can have more improvement done over and above that. It's best to talk to a qualified lender who works with all these renovation projects. Example, we have Jumbo Renovation for up to $150,000 in renovation costs. Some renovation products are for as little at $2,000. There are just so many options that it's best to discuss your personal needs and qualifications with the lender. Denise Olson PrimeLending A Plains Capital Company https://lo.primelending.com/dolson 608-438-0317
0 votes
Denise Olson, Home Buyer, Pewaukee, WI
Fri Sep 27, 2013
Randy Roberts from Beverly Hills, CA in response to what you wrote yesterday, Randy, in using the renovation product it's very difficult to only have 3% down payment. Reserves are required of the borrower. HomePath allows for 3% down on a case by case basis but HomePath Renovation required 5% down. In addition the borrower will have to have reserves. The construction reserves are either 10 or 20 percent of the construction costs. so if the construction costs are 20k, the reserves could be as high as an additioanl 4k. The 20% reserves is typical of a property where the utilities were not on. The lender can't be for certain that the water is leaking or electrical challenges without utilities on, thus they make the borrower have 20% reserves instead of 10%. Denise Olson, PrimeLending https://lo.primelending.com/dolson
0 votes
Add something new to the topic. Really only need 3% down? Wasn't that said about 100 times. Stop self promotion. I guess business is slow for you!!!
Flag Fri Oct 4, 2013
Denise Olson, Home Buyer, Pewaukee, WI
Fri Sep 27, 2013
HomePath Renovation mortgage financing is financing specifically allowed for distressed Fannie Mae listed homes. These homes are in need of repair. The repair could be minor or major. You would find these houses listed at homepath.com. These are complicated loans but a good qualified lender can help you through the process. go to https://lo.primelending.com/dolson you will find my website. I am a qualified Homepath Renovation lender. The beautiful thing about HomePath Renovation mortgage financing is you have the ability to finance the repairs, provided the "as completed" appraised value support the cost of the purchase price and the repairs. This is as near a construction loan as you will get. There are limitations on how much you can finance. The house had to have previously had an occupancy permit. This means, you can't use this product on a house that has never been issued a permit to live in. Great product. There are a limited number of lenders in the country who can process these loans. PrimeLending A PlainsCapital Company is one of those few.
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lendersnetwo…, Agent, Plano, TX
Thu Sep 26, 2013
Buy with as little as 3% down
No mortgage insurance
Get up to $35,000 to renovate your home

I know some Lenders that can qualify you for a homepath properties with credit scores as low as 600 may qualify. It all depends on the Lender you use, I know a couple Lenders I would be able to refer you to..
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Dana Lindberg, Both Buyer And Seller, Phoenix, AZ
Sat Sep 14, 2013
It is a program which allows a borrower to purchase a property that requires light to
moderate renovation. The loan amount includes both the funds for the purchase and for the renovation.

Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
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Tiffiny, Home Buyer, Spokane, WA
Wed Jul 17, 2013
Say I am buying a Fannie Mae house for $85,000 and the repairs needed to be done are $5,000. What would that scenario look like with the renovation mortgage?
ALSO......what types of repairs are allowed to be done? For instance, can putting in new carpet qualify? Can we put it towards appliances (like if the home did not come with any?) Can we put it towards paving/repairing/widening the driveway? Thank you!!
0 votes
$85,000 + $5,000 + 10 or 20% contingency reserves = $91,000. Your house has to appraise with an "as complete" value at no less than $91,000. What is "as completed"? It is the value of the ouse after the repairs are complete. Yes to all the repairs you listed, however they are limited to the houses.
Flag Fri Sep 27, 2013
americashmor…, , Costa Mesa, CA
Mon Dec 10, 2012
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.
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, ,
Fri Sep 21, 2012
A Homepath Renovation loan always require an appraisal. See me previous post.

Homepath Mortgage is a different type of loan which does not require an appraisal.

Your interest is high probably becuase of the precentage your putting down on the property and your mid credit score. I personally never recommend putting only 3% down because of the increase in rate.
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My credit score is 806. Shouldn't that help the rate of interest? thanks for the answer to my first question, VERY Helpful. thanks
Flag Sat Sep 22, 2012
My credit score is 806. Shouldn't that help the rate of interest? thanks for the answer to my first question, VERY Helpful. thanks
Flag Sat Sep 22, 2012
Lucy Nichols, , Boonville, MO
Mon Aug 20, 2012
I purchased a homepath home in 11/2011 and was not told about the renovation loan. How do I apply
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Hollie, Home Buyer, Picayune, MS
Fri Jul 13, 2012
i am looking to try this kind of loan in picayune ms. anyone know who out this way is an honest person or organization to help me with this. hud has already taken me for 2k b/c of a loan officer lying to me over 5 mths of heart break.
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Robert McGui…, Agent, Denver, CO
Wed May 16, 2012

This Fannie Mae Homepathe Renovation Loan is a great product for the right people. It is 3.0% down and you can get up to $35,000 for renovation and repairs included in the loan. The credit score is lower than a lot of tratitional products. The renovations can be most things except for stuctural repairs such as tearing out walls and doing additions. This link is to the website that explains everything. You also need a good lender who is certified with FNMA and is very famiar with the nuances of this loan product. Good success with your venture. - http://j.mp/JIVPRo

Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
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Terriw, Home Buyer, Reed City, MI
Wed May 16, 2012
what does it take to qualify? what kind/extent of renovation is covered?
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Ron Rovtar, Agent, Boulder, CO
Fri Mar 23, 2012
This question was asked a long time ago and there is a lot of good advice in other answers. But things change and buyers might think that HomePath went away with the recession. It did not –– at least not yet. Below is a link to the Fannie Mae page with up-to-date info about HomePath mortgages and renovation mortgages.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
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Monte Hamilt…, Home Buyer, Diamond Springs, CA
Fri Mar 16, 2012
Who decides what repairs are to be done on a H.R.M?
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Robert McGui…, Agent, Denver, CO
Tue Nov 29, 2011

This is a loan on properties that have been foreclosed and resold by FNMA. They allow you to add in rehab costs into the loan with some restrictions. It is similar to the FHA 203K renovation mortgage. There are certain lenders registered with FNMA that are allowed to do these loans and they will have all of the details as to how it works. You might want to check with your current bank or lender to see if they can help you.

Robert McGuire ASr
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
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, ,
Tue May 3, 2011
Please stop by and see http://www.homepathworld.com or check out my blog. You will see insider information regarding the FannieMae HomePath Renovation Loan.

We are the ONLY bank licensed to do this loan in ALL 50 States... there is a reason for this... WE KNOW HOW TO DO IT and ARE LICENSED TO DO SO.

Check out my blog, if I can help, I would be delighted. Please give me a ring.

Brent Kluge
Web Reference:  http://www.203kworld.com
0 votes
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