What Are The Advantages Of Homepath Loans?
Seeing the pros and cons of FHA and other conventional loan programs Charles decided to not opt for any of them. He was desperately searching for financing options that had great benefits like no mortgage insurance, low down-payment, etc.
If you are sailing in the same boat as Charles then keep reading to know more about a financing option that saves a lot of your money.
HomePathloans are available for properties that are essentially owned by Fannie Mae. When you look for bank-owned properties you wont find them in as good condition as offered by Fannie. They are in a better shape and have better living conditions. The mortgage process in this case is different.
The advantages of these loans are outlined below:
Low down-payment: The more you save on down-payment the greater will be the funds available for buying furniture, moving costs or renovation. The minimum down-payment required is 3% of the purchase price, lower than FHA loans.
No Private Mortgage Insurance (PMI): Conventional loans require mortgage insurance with less than 0.8 loan-to-value ratio. This reduces your monthly payments as compared to other loan programs.
No need of Appraisal: A certified appraiser has to give you an appraisal while buying a house. Thisloan does not require appraisal to prove the value of the home.
What are the different types of HomePath loans?
The two types of loans under this program have their own benefits. To help you select a suitable option the benefits have been listed below:
HomePath Mortgage: It is available for properties that allow ready move-in for occupants and buyers as well. This popular loan program requires 3% down-payment, which can be gifted by a close-blood relative. The mortgage terms are flexible and rate options are adjustable. A low credit score of 660 is allowed. No appraisal and mortgage insurance is required. As an investor you can get financing with 15% down-payment. Under this program interest only is available.
HP Renovation: This program will ensure that you get funds for the purchase and renovation of the property. This program requires 3% down-payment. As an investor financing at 25% down-payment is possible. A low credit score of 60 is acceptable. This program differs from the former as you need to have an appraisal on the on the renovation. No mortgage insurance is required in this case. Cosmetic renovation worth up to $33,500 is built-in.
You can choose the financing option as per your wish. The source can be a credit union, local bank or any other financial institution.
With the benefits cited above it is recommended that you work with a loan officer who has a greater success probability of closing such loans to ensure a smooth process.
If you are sailing in the same boat as Charles then keep reading to know more about a financing option that saves a lot of your money.
HomePathloans are available for properties that are essentially owned by Fannie Mae. When you look for bank-owned properties you wont find them in as good condition as offered by Fannie. They are in a better shape and have better living conditions. The mortgage process in this case is different.
The advantages of these loans are outlined below:
Low down-payment: The more you save on down-payment the greater will be the funds available for buying furniture, moving costs or renovation. The minimum down-payment required is 3% of the purchase price, lower than FHA loans.
No Private Mortgage Insurance (PMI): Conventional loans require mortgage insurance with less than 0.8 loan-to-value ratio. This reduces your monthly payments as compared to other loan programs.
No need of Appraisal: A certified appraiser has to give you an appraisal while buying a house. Thisloan does not require appraisal to prove the value of the home.
What are the different types of HomePath loans?
The two types of loans under this program have their own benefits. To help you select a suitable option the benefits have been listed below:
HomePath Mortgage: It is available for properties that allow ready move-in for occupants and buyers as well. This popular loan program requires 3% down-payment, which can be gifted by a close-blood relative. The mortgage terms are flexible and rate options are adjustable. A low credit score of 660 is allowed. No appraisal and mortgage insurance is required. As an investor you can get financing with 15% down-payment. Under this program interest only is available.
HP Renovation: This program will ensure that you get funds for the purchase and renovation of the property. This program requires 3% down-payment. As an investor financing at 25% down-payment is possible. A low credit score of 60 is acceptable. This program differs from the former as you need to have an appraisal on the on the renovation. No mortgage insurance is required in this case. Cosmetic renovation worth up to $33,500 is built-in.
You can choose the financing option as per your wish. The source can be a credit union, local bank or any other financial institution.
With the benefits cited above it is recommended that you work with a loan officer who has a greater success probability of closing such loans to ensure a smooth process.
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