HomePath Financing Foreclosures

Wow, what a great option for home financing!   Fannie Mae properties listed on their website www.homepath.com are eligible for HomePath mortgages.  HomePath is offered exclusively to borrowers buying homes from Fannie Mae.  There are options for Primary Residences, Second Homes and Investment properties to include Single Family Residences and Condominiums.   Primary residences require a minimum of 3% down payment, with 10% down payment on Second Homes and Investment properties. 

 A few advantages to mention regarding the benefits of HomePath financing are No PMI (private mortgage insurance), No Appraisal, No Condo Questionnaire, and No need to fix repairs to qualify for financing.

Generally, if the borrower does not have 20% down payment, mortgage insurance would be required.  No mortgage insurance can save a borrower thousands of dollars over the life of the loan. For example, if the mortgage insurance is $100 per month, with a minimum of 5 years to keep on the mortgage, that is $6000 over the life of the loan.  With Homepath financing, mortgage insurance would not be required, thus a huge savings to the borrower. 

There can be many issues with a house appraising.  With HomePath, the sales price is used as the property value.  Fannie Mae has determined the price and the lender will accept that value without an appraisal.

Condominiums do not require a review except to verify that the project is not a Condotel.  This would avoid the need for a condo questionnaire to be completed.  The information contained on the condo questionnaire may make a condo ineligible for financing under normal conventional financing.    With HomePath, that would not be an issue.  Another great advantage is that some lenders have no additional LTV limits that would apply to Florida properties. 

A Fannie Mae-owned house or condominium may need repairs but would not be able to be completed prior to purchase. By applying for a HomePath mortgage, which doesn't require a property inspection or appraisal, the borrower would be able to finance the property and make the repairs after closing.  HomePath allows for 6% seller contributions for Primary and Second Homes, and 2% seller contributions for Investment Property. This could allow the borrower to keep more of their closing costs money in their own pocket to complete the repairs needed after closing. 

Happy to answer your questions on HomePath Financing.

Dawn M. Houser Senior Mortgage Banker

Phone:  239-464-9455   / Fax:  866-686-5382  / Email:  Dawn.Houser@aemc.cc

 

 

WITHOUT EXCEPTION

     So, you have a couple looking at one of your open units at your condominium building, very personable and they look like a responsible pair of people. You check their backgrounds and see some financial information that causes you to re-think their application. However, you want to rent the unit and you now want to place a clause in the lease that provides in the event the resident files bankruptcy, you as the landlord will be excluded from the effects of the bankruptcy, and that the resident cannot use the bankruptcy as a way to stop or suspend paying the rent.

     Sounds like a great idea but it is not possible. If it were possible, then every creditor would have this type of clause in their contracts.  Their lawyer and the judge would laugh you right out of court.  These clauses are completely unenforceable, however badly you want to cover all your bases. When you own or manage a building full of condominiums or apartments, all landlords take a risk that their residents may file bankruptcy, and there is simply nothing you can do about it.

     If you receive notice that your resident has filed bankruptcy, call your attorney immediately.   Your attorney may or may not be able to place a lien or something similar on their income, other property or anything he or she may be able to find.  Get to know your eviction laws in your city, county and/or state as well. See what you can do to protect you and your property.