Turning dreams into reality with home path mortgage financing

Understanding about home path mortgage financing

Have you ever driven past a home with a sign that says “Fannie Mae Home path”?  If so, and if you’re in the market to buy a home then this could be another option for you to add to your property search.  So, what is a Home path property?  It’s a property which is currently owned by Fannie Mae and was acquired through the foreclosure process.  The name “homepath mortgage financing” is the branding term used for these Fannie Mae-owned properties.

How Home Path Properties Work for You

There is no special requirement for you the home path mortgage financing properties can be purchased like any other property on the market with or without financing.  It can be purchased as an owner occupied (your primary residence), an investment property or even as a second home. Fannie Mae also offers its own financing product specifically for these properties called a “Home Path Mortgage”.

Home Path Properties and Original Home Loans

Just like HUD homes, Home path properties can have an advantage of being financed with the same type of home loan originally used before it was foreclosed on.  On HUD homes that would be FHA insured financing.  For Home path properties that would be a “Home path Mortgage”.  There are two types to choose from, one with renovations and one without.  Depending on the property it will indicate which type of Home path financing is available which you can find at the Home Path website.

Considering Home Path Mortgage for Your Home

Home Path Mortgage:  But, in exchange for a home loan with no mortgage insurance which is typically required, there may be a higher interest rate in comparison to other home loans with home path mortgage financing.  For the most part, the monthly payments would still be within the same range so using a “home path mortgage financing” when buying a “Home Path property” could still be your best bet.  Both “owner occupied” buyers and investors can apply for the “home path mortgage financing”.

Home path Renovation mortgage lender:  It works similar to the FHA 203k loan in the sense that it is one loan amount which includes both the funds for the purchase and renovations but it has more limitations than the FHA 203k loan. For instance “home path mortgage financing” allows for light to moderate renovations of a property with a limitation of 35% of the “as completed value” with a maximum renovation amount of ,000.  Light to moderate renovations are ones that will allow the borrower to live in the property while the renovations are completed. Those repairs will be identified in the appraisal, including any cosmetic repairs identified by you, the buyer.  Both owner occupied buyers and investors can apply for the “home path mortgage financing”.

FHA Loan and Home Path Mortgage Comparison

Home Path & FHA Lenders Your best comparable alternative, if you plan to purchase as owner occupied with a minimal down payment, would be an FHA loan.   The FHA loan has a similar minimum down payment of 3.5% which is only a half percent (.5%) more than a “home path mortgage financing”.  And if the property needs improvements, be it minor or major rehab, you can utilize the FHA 203K. FHA loans also have a bit more flexibility in qualifying plus on average a lower interest rate.  As a reminder, FHA loans do require mortgage insurance.

 Making the Best Choice for Your Home Path Property Loan

Having choices and making sure you get the right loan for your “home path mortgage financing” is important so the first step you should take is to talk to a lender.  Keep in mind though, not all lenders are approved or specialize in these types of loans.  So, whether it’s the “Home Path Mortgage” the “Home path Renovation Mortgage”, FHA or FHA 203k loan chooses wisely.

Conclusion 

Dream Home mortgage is the gold standard when it comes to home path mortgage financing. With Dream Home Mortgage by your side, you can rest assured that the process of getting a mortgage will be easy and stress-free since we combine our knowledge with a dedication to offering solutions that are unique to you. To successfully navigate home path mortgage financing, you need a partner that is well-versed in the financing process and sensitive to the fact that every homeowner's circumstances are different. When it comes to advice, Dream Home Mortgage really shines. They take each client's unique goals and wants into account, going above and beyond just the transactional. To make sure the financing fits in perfectly with your home buying plans, they recommend that consumers talk to lenders that focus on Home Path loans.