Homepath
Buyers have much to gain in the current real estate market! Rates are at historical lows, there is a vast inventory, homes are affordable, and lets not forget about the tax credits! If you are in the market you may consider purchasing a Bank Owned REO with a HomePath Mortgage. One key benefit of purchasing an REO with HomePath, is the chances of getting a remarkable deal are pretty good.
HomePath was designed to help sell Fannie Mae REO’s. HomePath offers low down payment options, no mortgage insurance, and no required appraisal. With HomePath the sales price of the property will be used as the property value and for determining the LTV/CLTV.
In addition, if the home you are purchasing requires a little work, you may be eligible for a HomePath Renovation Mortgage. This loan combines financing for you home, and financing for repairs of up to $30,000, or 20% less of the value after improvements whichever is less. The guidelines for a HomePath Renovation loan are similar to that of the regular HomePath loan, in that no mortgage insurance is required, low down payment options, and flexible loan terms.
Keep in mind, although no appraisal is required with a HomePath mortgage, borrowers can request and appraisal themselves, which in addition to ordering a home inspection, may be a prudent choice, given the state of many REO properties. You get what you pay for, and some deals are too good to be true.
