HomePath financing is the mortgage vehicle that is available to REO foreclosure buyers of Fannie Mae homes. There are thousands of REO foreclosures available nationwide through Fannie Mae, and HomePath loans are really great mortgages with extremely low fees, low rates, and very lenient qualification terms. Check out the perks you’ll enjoy with Redding HomePath mortgage loans through Chris Lamm: Redding Mortgage Lender.
- Low Down Payments Are Allowed
If you’re looking to buy a primary residence to live in, you’ll need only a 3 percent down payment to qualify for a HomePath mortgage. You’ll need a 10 percent down payment for an investment property.
- You’re Not Disqualified If You Already Own a Home
You can already have a mortgage on ten homes and still qualify for a HomePath mortgage. You’ll need a 25 percent down payment though if you already are financed on four properties or more. This is great news for investors!
- No Appraisal Is Required
An appraisal is not needed for a HomePath mortgage. If you’re concerned about an appraisal coming in a little low, you probably shouldn’t be paying that much for the property anyway. Be careful here. If you’re serious about making an investment, consider getting your own appraisal just to be on the safe side.
- PMI or Private Mortgage Insurance Is Not Required
This is a great advantage to a HomePath mortgage loan! Depending on the value of the home, you can end up making an insurance payment every month that will cost you anywhere from $20 a month to hundreds every month. You won’t run into this added insurance expense with HomePath.
- Jumbo or High Balance Mortgages Are Available
Sometimes with a mortgage that is as flexible as a HomePath mortgage, you can’t get larger loans. Ask Chris Lamm for details.
- Sellers Can Contribute to the Mortgage (via Seller’s Concessions)
This is yet another great advantage of a HomePath mortgage! The amount that the seller can contribute varies. It depends on how large your down payment is. Sellers can only contribute 2 percent on an investment property.
- One Disadvantage—The Rates Are Higher Than 30-Year Conventional Mortgages
You can buy discount points to bring down your rate to the national average 30-year conventional mortgage rate. Remember that you won’t be paying private mortgage insurance. Depending on the size of your loan and your down payment, you may actually break even on the monthly payment when you factor in the lack of PMI and the added bonus of seller’s concessions.
Add Redding HomePath mortgage loans to your list of options. I think you’ll like what you find. For more info, feel free to call Chris Lamm: Redding Mortgage Lender at 530-282-1166.