HomePath home loans for renovations enable people to purchase homes that require repair. The expense of repairs can be rolled into the mortgage principal, making the purchase more affordable. The following is an overview of HomePath home loans for renovations.
Real Estate that Qualify
In general, HomePath home loans only apply to Fannie Mae owned listings. Lenders must be approved to offer HomePath home loans. There are typically a wide range of lenders. Properties requiring minor to moderate renovation may also fall under special HomePath home loans for renovations. This is usually included within the listing details.
Who Can Obtain HomePath Home Loans
In addition to the house qualifying for HomePath home loans, borrowers must also be eligible. Specific guidelines can vary by company but typically involves income and credit score requirements. Speak with your lender for details.
Features of HomePath Home Loans For Renovations
HomePath home loans for renovations come with some useful terms. Home buyers may put down as little as 5%. More importantly, down payment funds may be their own funds, a gift, a grant, or even loaned from certain approved entities. Both adjustable and fixed interest rate mortgages are available. Another money saving term is that no mortgage insurance is necessary. Lastly, it is acceptable for sellers to make contributions towards closing expenses.
An appraisal is completed to guestimate what the resulting value of the property will be once work is final. The principal of the loan will include the purchase price plus expense for repairs. Repair costs may be as high as $35,000 or 35% of the appraised value.
Additional Information on HomePath Home Loans
When considering purchasing a Fannie Mae listing that qualifies for HomePath, you should contact an approved lender immediately. Your lender will provide more comprehensive information on your qualification and what the loan figures would be. This information will help you determine whether the home will be a good match for you financially. For further details on this and other similar topics, contact Bill Kuhlman at Kuhlman Residential at 781-444-1399 or email@example.com.