Many homebuyers seeking financing may take advantage of a type of loan devised by a lender to sell a foreclosed property at the best deal that the market would allow.
This type of loan is called the HomePath Mortgage Loan, and one of the largest lenders in the US, Fannie Mae, is one such lender who devised its own financing program in order to stimulate the sale of properties in its inventory.
From the perspective of an interested buyer, a HomePath Mortgage Loan may be the easiest way to acquire a dream property and renovate it to suit one’s own taste. It is very similar to a Streamline 203k loan but a HomePath loan will require a lower down payment and none of the mortgage insurance or appraisal requirements of an FHA loan.
The mortgage terms are very reasonable and flexible in a HomePath renovation program. The low down payment requirement may also be sourced from a variety of funds – from savings, to a gift or an employer grant. A lower credit rating is not as much a weakness unlike in the application of other loan programs. The biggest feature of this renovation program is still that most lenders are more than willing to cut a borrower the best deal in order to stimulate demand for their inventory.
More specifically, a HomePath Mortgage Loan may provide coverage up to 35% of the improved value or $35,000 in cosmetic or structural repairs, whichever is less. This amount includes the 10% contingency reserve and all other fees. There are no exceptions allowed in excess of this repair amount limit and borrowers may not fund the costs in excess of the limit.
With a HomePath Mortgage Loan, funding both your purchase and renovation might be just around the corner for you. Whether you are an investor, a renter of a home owned by a lender or a homeowner wanting to buy a second home, a HomePath Mortgage Loan may offer you the best deal on the market.
PrimeLending offers various loan options to homebuyers in Springfield and in all the other US cities. Go ahead and contact us today and learn the many opportunities you can take advantage straight from one of our experienced mortgage bankers.