Can the bank require 10% on a HomePath property? (RE agent, appraisal, 3%)
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I got pre-approved for a HomePath property that I bid over by a few thousand dollars. I was told by my lending officer that the bank would be able to do full financing for what I offered. I was told I would be able to bring in 3% to closing. But now that my loan has gone into underwriting, now the lender is saying I have to actually bring in a 10% downpayment, which will be about $7,000 more dollars than I expected. Nothing has changed with my financial state or the property (as far as I know). Can they do this with a HomePath property? This will be my primary residence, btw.
Sounds like the loan officer initially gave you the best case scenario, then after full review of your finances, plus the the overbid, you will need a larger DP. This is not uncommon, especially when you make your estimates on best case vs. worst case estimates.
It's a HomePath property so the minimum downpayment is 3%, but my lender said that based on my credit score I would be required to bring in 10%, even though I qualified for a HomePath mortgage. Also, there is no appraisal on HomePath properties.
I told my lender that I didn't bid on a HomePath property just to bring in over $10K. If I had known that, I would've tried to get a conventional loan or something. But HomePath properties are attractive to some buyers specifically because they don't have a large downpayment.
Also, I understand credit score is important, but other than my student loans (which total less than $5000), I don't owe anyone. I have one open line of credit that has a zero balance, and have been on my job going on three years. I've also managed to save well into five digits in those two years of working. I shouldn't have to deplete my savings to bring in such a high downpayment.
You answered the question yourself. It has nothing to do with it being a homepath property. It has to do with your credit and debt to income. Also, just because homepath loans do not require appraisals , you should still get one on your own to protect yourself.
It's a HomePath property so the minimum downpayment is 3%, but my lender said that based on my credit score I would be required to bring in 10%, even though I qualified for a HomePath mortgage. Also, there is no appraisal on HomePath properties.
I told my lender that I didn't bid on a HomePath property just to bring in over $10K. If I had known that, I would've tried to get a conventional loan or something. But HomePath properties are attractive to some buyers specifically because they don't have a large downpayment.
Also, I understand credit score is important, but other than my student loans (which total less than $5000), I don't owe anyone. I have one open line of credit that has a zero balance, and have been on my job going on three years. I've also managed to save well into five digits in those two years of working. I shouldn't have to deplete my savings to bring in such a high downpayment.
I have two things to say about this post. First you and your re agent were not on the same page. I do not know who is at fault, but your agent should have explained to you the situation AND should have reviewed your pre-qual (with you or your LO) before placing the bid to make sure you were using the best program for you.
Secondly, you can still request a change in your financing from HP to FHA or Conv. Fannie Mae may not like it, or even say no, but I have seen it happen many times were they allowed the change as long as you are not delaying closing.
I have two things to say about this post. First you and your re agent were not on the same page. I do not know who is at fault, but your agent should have explained to you the situation AND should have reviewed your pre-qual (with you or your LO) before placing the bid to make sure you were using the best program for you.
Secondly, you can still request a change in your financing from HP to FHA or Conv. Fannie Mae may not like it, or even say no, but I have seen it happen many times were they allowed the change as long as you are not delaying closing.
Again, your agent should be on top of this.
I don't see how an agent could have known this would happen.
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