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Monday Morning Mortgages>
Monday Morning Mortgages
October 21, 2009
Fannie Mae HOMEPATH
Homepath is a program organized by Fannie Mae to sell Fannie owned REOs. The incredible parts of this program are;
• Homepath special financing is available for these REOs
• There is actually Homepath inventory in Santa Rosa and Sonoma county
Go to www.Homepath.com to search current listings for our area. This am there are 42 listings for Santa Rosa, 30 of which are listed at $300k or less.
Financing features are incredible.
• No appraisal required no matter what the offer price is. If the offer is accepted, the value will be the offer price. Fannie Mae already knows the conditions of these properties are willing to lend on these homes.
• Owner occupied OR investment purchase.
• 3% down payment for owner occupied SFR up to $417k loan amount.
• Owner occupied down payment can come from gift or Santa Rosa ADDI assistance program (if buyer qualifies).
• 10% minimum down payment for investors
• NO MORTGAGE INSURANCE REQUIRED
• PUD, and Fannie approved condos ok (if it is on the list, it is approved)
• Interest only available
• 660 minimum FICO
• Up to 6% seller concession allowed
Purchase contract wording needs to include this clause:
Purchase Agreement must include a purchase addendum with page 1, paragraph 3 indicating that the agreement is contingent on Fannie Mae Special REO Financing from a participating lender. If this is not indicated and the borrower wants to use HomePath financing, the borrower must work
with their real estate agent to ensure the contract addendum is updated appropriately.
Homepath rates are higher than market. Comparing today’s rates:
Program MI Down Rate Points
Conventional None 20% 4.875% 2.5%
Homepath None 3% 6.25% 2.5%
FHA MI 3.5% 4.75% 2.5%
Closing time is the same as conventional lending but remember to increase those loan contingency periods (see below).
Loan Contingency Release
Here is a reminder to increase your loan contingency release period in contract to 24 days. The new disclosure and appraisal requirements make it difficult to release contingencies in 17 days, though closing in 30 days is an easy promise.
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