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I can only find some very high level details about the program. It seems to have been created for people who normally wouldn't qualify for a more traditional mortgage. In other words, it seems to be part of the problem of why the real estate market is in the current state.
The part I'm most interested in is the part that states "no mortgage insurance". What are the stipulations around this? Do they increase the interest rate?
I can only find some very high level details about the program. It seems to have been created for people who normally wouldn't qualify for a more traditional mortgage. In other words, it seems to be part of the problem of why the real estate market is in the current state.
The part I'm most interested in is the part that states "no mortgage insurance". What are the stipulations around this? Do they increase the interest rate?
Thanks!
They are trying to rid themselves of assets, so they are willing to take on more risky clients in order to do so.
No mortgage insurance because they are self insuring. It's a really good program if you can find a home that qualifies.
Thanks. I just haven't been able to find much info or any opinions on this program. We put an offer in on a house that qualifies for this program. We've secured conventional financing approval, but this sounds like an attractive way to go.
There is not much information out on the net on this program. In case anyone else is interested in this program, the most detailed info I've found is here:
I finally found someone who could give me some answers and a GFE for a HomePath mortgage. With average => good credit you pay a 1% origination fee and a 2.5% discount fee in addition to normal closing costs. If you have excellent credit, you can eliminate the origination fee, but still must pay the 2.5% discount fee. The interest rate was a bit higher than conventional or FHA, but not by much.
So, while there do appear to be some benefits for some people, it requires some significant upfront costs which I assume some of the less qualified buyers will roll in to the mortgage.
Anyway, if you are buying a Fannie Mae owned foreclosure and it qualifies for this program, its worth a look, but for me the numbers didn't work out.
Hope this can help someone else out who may be looking for info.
I'm trying to buy one now. I have great credit and a 40% down payment, they are forcing me to pay a higher mortgage rate stating that it is income property, even though I'm going to be living in it as primary residence. The program states that you are eligible for up to a $10,000 fine for using it as a rental property, so if I sign the papers, I'm not only committing perjury, I'd be paying a higher rate and subject to fine. They've been jacking me around for weeks. The program states you can use your own loan but they stated they would decline to accept my offer if I did (and I already had a pre-approved loan from my credit union.) I'd steer clear of these -- there's something screwy about them. The paperwork from the bank states that "the banks do as they please and if you don't have the stomach for it, do not submit an offer."
I'm trying to buy one now. I have great credit and a 40% down payment, they are forcing me to pay a higher mortgage rate stating that it is income property, even though I'm going to be living in it as primary residence. ...
Why does your lender think it is going to be income property? Fannie Mae requires that you sign a statement that it will be owner occupied (that's where the $10K fine comes in if not true). If you don't sign it, then you are considered an investment property buyer.
You then stated that you would be committing perjury by signing the occupancy statement - so which is it, investment property or primary residence?
If you want a Homepath loan, then you need to work with a lender that is part of the Homepath program. Homepath loans will have higher rates than other conventional loans.
I can only find some very high level details about the program. It seems to have been created for people who normally wouldn't qualify for a more traditional mortgage. In other words, it seems to be part of the problem of why the real estate market is in the current state.
The part I'm most interested in is the part that states "no mortgage insurance". What are the stipulations around this? Do they increase the interest rate?
Thanks!
Yes, the interest rate is higher but the more $$ down the lower it gets. We are closing on a Homepath home but went with FHA. Right now Homepath has a deal (expires Oct. 31) for 3.5% toward your closing and an agent bonus of $1200. We were able to get the 3.5% closing and bonus for the agent.
Yes, the interest rate is higher but the more $$ down the lower it gets. We are closing on a Homepath home but went with FHA. Right now Homepath has a deal (expires Oct. 31) for 3.5% toward your closing and an agent bonus of $1200. We were able to get the 3.5% closing and bonus for the agent.
They have extended this deal many times now. If you are reading this after the expiration date of Oct 31, 2011 - check to see if they extended it again.
They have extended this deal many times now. If you are reading this after the expiration date of Oct 31, 2011 - check to see if they extended it again.
I'm sure they will. Surprisingly the market for larger/modest upscale pool homes in Surprise is hot. We viewed 15-20 homes the past month or so and all are under contract now. Some of the better homes are lasting 3-4 days.
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