Recently, in Frisco, we have seen the new Fannie Mae Home Path Mortgage Program pick up steam. Fannie Mae owned homes that are eligible for this program will have this logo on the listing.
HomePath is a mortgage that allows someone buying a Fannie Mae owned foreclosure that is eligible for this program to buy with little down payment. The biggest benefit in this program other than the low down payment is that you do not have to carry PMI (private mortgage insurance) on this property. The minimum down payment required is 3%. Available for investment home purchase too.
Other honorable mentions for this program, and mortgage guidelines:
1. No appraisal is required on these loans! Value is determined by the sales price agreed upon between buyer and Fannie Mae
2. LTV’s up to 97% are eligible…meaning 3% of sale price is the most you must put down as down payment
3. 660 FICO score required for ltv’s greater than 80%…meaning, if you are putting 20% or less down, you must have a 660 credit score
4. 620 FICO score required for ltv’s less than 80%…meaning, if you are putting down more than 20%, you can have a credit score as low as 620 and still be eligible for this program
5. Home investors welcome on this program, not just primary purchase home buyers