What are the qualifications for a HomePath mortgage loan?

Asked by Bradley1111, Chehalis, WA Wed Nov 3, 2010

We got pre-approved for a USDA loan but we're interested in a Fannie Mae owned home & I'm wondering if the HomePath would be a better option for us? What are the credit score & debt-to-income requirements.. I read that they are stricter than FHA loans?

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16
- Andrew Mar…, Mortgage Broker Or Lender, Sacramento, CA
Thu Nov 4, 2010
Fannie Mae has developed a great program to help sell off some of their inventory of foreclosures. An investor can purchase a HomePath designated Fannie Mae Foreclosure* with only 10% down; if you are looking to purchase as a primary residence, only a 3% down payment is needed.

Eligible Fannie properties require NO PMI, and currently have very low interest rates! Go to HomePath.com to get a list of homes.

Highlights for available financing include:
• 97% financing for Primary Residences
• 90% financing for Second Homes and Investment Properties
• No appraisal required
• No mortgage insurance (MI) is required – although Fannie Mae price adjusters will apply
• Flexible mortgage terms – including fixed-rate, ARMs or the Interest-Only payment feature*
• Min 620 score for 80% or lower LTV
• Min 660 score for 80.01% and above LTV
• FNMA Desktop Originator/Underwriter® Approve/Eligible Required**
• Includes Condos as long as project has sufficient Fidelity, Master Hazard, and Flood (if applicable). HO6 “Walls in” Coverage also required
Max Debt-to-income ratio is 45%

* The property must be designated on HomePath.com as eligible for HomePath financing. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.

I can help you finance these properties, for more information, please contact me for additional details at http://www.ccflender.com or 866-790-6925
Web Reference:  http://www.ccflender.com
4 votes
I have been approved, for buying a home, it is a Home Path property; with a conventional loan. The loan is held by a mortgage company. I am a disabled person, and want to know if the Home Path program can help me make smaller mortgage payments as disability is my only source of income.
Flag Thu Nov 14, 2013
Andrew, How likely is it that a retired unemployed individual who owns his own home outright would qualify for a homepath mortgage based off of social security income only?
Flag Sat Apr 27, 2013
Jessica Bate…, Agent, Beverly Hills, CA
Tue Jun 9, 2015
You should speak to a loan officer to see if you qualify. There are great answers below but it's best to get on the phone and speak to a lender. I'd recommend The Lenders Network, they can refer you to a lender who specializes in HomePath mortgage loans.
2 votes
Jessica, Home Buyer, Chehalis, WA
Thu Feb 2, 2017
Yes the credit score requirement is higher than FHA. You need a 620 score for a homepath loan, and the max DTI is 45%. The homepath program is no longer available, however an FHA loan is just as good. Check out The Lenders Network for more information and to see if you qualify.
1 vote
Michael Mull…, Mortgage Broker Or Lender, Bend, OR
Sat Nov 6, 2010
Bradley - is the Fannie home located in a USDA eligible location? That would be my first question - you may not even have a choice. Your post sounds like you are well educated on the programs so you may already know. My thought to your question is that normally a question like this would be answered "it depends upon whether the home is eligible for USDA financing OR a Fannie Homepath." If you love the home then go for it - regardless the program. The lender that has you pre-approved for the USDA loan should be able to tell you pretty quickly whether you qualify for the HomePath or not. If they can't - find another lender. :)
1 vote
Alex Foraker, Agent, Puyallup, WA
Wed Nov 3, 2010
Hello Bradley, USDA is a zero down program whereas homepath requires 3% a little better than FHA at 3.5%. 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. Good avenue for financing the foreclosures potentially in need of repairs is the homepath renovation. Yet another low down option is looking at HUD owned homes offering $100 down and they're generally pretty aggressively priced. Sounds like you already have a lender but I would be happy to keep you notified of newly listed properties in your area if you need an agent. Alex

http://www.homepath.com/ <<-- homepath website

http://www.tenmanagement.com/listings/state.do?code=WA <<-- HUD homes
Web Reference:  http://www.homes77.com
1 vote
Fred Griffin, , Tallahassee, FL
Wed Nov 3, 2010
1 vote
JoAnn Brophy, Agent, New Widsor, NY
Tue Jan 21, 2014
On a foreclosure when you sommit an offer and it has to be approved by Home Path what is required as to credit scores ect.. Thank you looking forward to your answer.
0 votes
daledmorris, Home Buyer, Chehalis, WA
Wed Jun 5, 2013
what are to debt to cedit ratio
0 votes
americashmor…, , Costa Mesa, CA
Mon Dec 10, 2012
We are 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.
http://www.americashloans.com
0 votes
Topgun, Home Buyer, Washington
Fri Jul 27, 2012
I have a SHORT SALE on my credit that happened a little over three years ago. FHA will allow this as long as it's more than 3 years. What are HomePath requirements in regards to this?
0 votes
- Andrew Mar…, Mortgage Broker Or Lender, Sacramento, CA
Tue May 29, 2012
Wjclapper there is no income restrictions.. There are on USDA loans
0 votes
Wjclapper, Home Buyer, Fredericksburg, VA
Tue May 29, 2012
Is there an income restriction to qualify for a Homepath mortgage?
0 votes
how many years after a short sale I can buy my new house?
Flag Wed Aug 6, 2014
, ,
Thu Nov 4, 2010
USDA is by far a better product: 100% financing with no mortgage insurance. Contrary to what others have said, HomePath is much more difficult to qualify. The credit score requirement is higher, the down payment is higher, the rate is higher, the maximum ratio of income to debt is lower (not a good thing if you need to qualify for a higher amount). Every lender is different with regard to credit score requirements because the only good thing about homepath is it allows for repair escrow up to $30,000.

USDA however, may offer a $5000 escrow repair loan that allows you to have repairs done to the house in order to qualify them for an FHA loan. The repairs must be done within 30 days of close. If you need to go over $5000, the loan will convert to a 203K loan which allows up to $35,000 in repairs or 110% of the after repair value, whichever is less. This loan can take upwards of 60 days to close (depending on repairs being done).
0 votes
Emelia Sanch…, , Ontario, CA
Thu Nov 4, 2010
Good answers below. Homepath also requires a minimum fico of 680. If you have student loan debt, even if deferred they will count it into your debt to income ratio this killed my last buyers opportunity to go homepath which is considered a conventional loan. The best thing to do is speak to your lender and see if you qualify not all lenders offer this program so find one who does.
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Wed Nov 3, 2010
Another big plus is the 3.5% incentives for buyers on HomePath homes closing before December 31st of this year!
0 votes
Kevin Olson,…, Agent, Colorado Springs, CO
Wed Nov 3, 2010
This is a myth. They are not more strict, in fact many times they are better and easier to obtain. While in some cases the interest rates are slightly higher, not having to pay PMI is a huge difference in your monthly house payment. Both USDA and HomePath have goods and bads, but it is my personal opinion that if you find a HomePath house that suits you, it can be a great thing!

Contact a HomePath lender to find out what is needed to qualify. Fred has posted a good link below for a starting point.
0 votes
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