If you are looking for a Mortgage Advisor to help you through the financing process, please give us a call at (520) 744-2292 or email Sue at sue@pcMortgageAdvisor.com.

Sue Pullen
Licensed Mortgage Professional #206048
Fairway Independent Mortgage Corp.
5401 N. Oracle Rd., #101
Tucson, AZ  85704
BK #0904162

Fannie Mae’s HomePath® Financing and HomePath® Renovation Financing

HomePath® financing is a special conventional loan created by Fannie Mae for Fannie Mae owned properties only.  To use this type of financing, a property must be designated by Fannie Mae as HomePath® Mortgage or HomePath® Renovation eligible.

HomePath® Mortgage:

You can put as little as 3% down with this loan, however, your interest rate and closing costs will be lower if you put at least 5% down for owner occupied properties.  If you are buying a HomePath® eligible home as a 2nd home, you must put a minimum of 10% down; and for investment purchases, a minimum of 15% down payment.

There is NO monthly mortgage insurance if you put less than 20% down.  However, you will pay a higher interest rate.

Credit scores need to be at least 660.  Less than 660 credit score means you must put 20% down on a HomePath® loan.  The higher your credit score, the lower your interest rate.

With HomePath® Mortgage financing, there is NO appraisal required.  You are purchasing the property “as is”.  Since there is no appraisal, there will be no lender required repairs.  We do recommend that you obtain a home inspection, so you know the condition of the property.  But keep in mind that since you are purchasing the property “as is”, the seller (Fannie Mae) usually will not do any repairs on the property.

Unlike normal conventional loans, your down payment and closing costs can be gifted to you from a family member.  And the seller (Fannie Mae) can pay up to 6% of the purchase price toward your closing costs and prepaids, although, they usually pay up to 3.5% of your closing costs with their incentive programs.

These loans can usually close in less than 30 days; however, since Fannie Mae gives the buyer 45 days to close, you are better off asking for 45 days and then close sooner.  This way, you are not penalized if the loan ends up taking longer than 30 days to close.

If you want to see if you qualify for a HomePath® loan, please complete the online form at your convenience.  Or, give us a call at (520) 744-2292 and we will take your information over the phone or set up a time to meet with you.


HomePath® Renovation Financing

The HomePath® Renovation loan is used to purchase properties that need light to moderate repairs.  You can purchase the home and include the cost of the repairs, all in one loan.  

You can put as little as 3% down with this loan, however, your interest rate and closing costs will be lower if you put at least 5% down for owner occupied properties.  You cannot use the HomePath® Renovation loan to purchase a 2nd home or an investment property.  This loan is strictly for owner occupied purchases.  

There is NO monthly mortgage insurance if you put less than 20% down.  However, you will pay a higher interest rate.

Credit scores need to be at least 660.  Less than 660 credit score means you must put 20% down on a HomePath® Renovation loan.  The higher your credit score, the lower your interest rate.

With HomePath® Renovation financing, you are purchasing the property “as is”.  We do recommend that you obtain a home inspection, so you know the condition of the property.  But keep in mind that since you are purchasing the property “as is”, the seller (Fannie Mae) usually will not do any repairs on the property.

Unlike normal conventional loans, your down payment and closing costs can be gifted to you from a family member.  And the seller (Fannie Mae) can pay up to 6% of the purchase price toward your closing costs and prepaids, although, they usually pay up to 3.5% of your closing costs with their incentive programs.

The HomePath® Renovation loan is a type of construction loan.  You cannot complete any of the repairs until you after closing, and you own the property.  The maximum amount of repairs is $30,000, and you have 3 months to complete the repairs.  All repairs must be done by licensed contractors.  This type of loan costs approximately $1,200 more in fees than normal, conventional financing.

Before we can order an appraisal on the property, you must meet with a contractor and obtain estimates for any work that will be done after closing.  We then submit these estimates (bids) to the appraiser who will determine an “as completed” value of the property. 

These loans usually take 60 to 90 days to close.  Be prepared for a longer than usual closing.  

If you want to see if you qualify for a HomePath® Renovation loan, please complete the online form at your convenience.  Or, give us a call at (520) 744-2292 and we will take your information over the phone or set up a time to meet with you.