HomePath Mortgage Loans

HomePath Mortgage Loans

This program offers many benefits to homebuyers, including a minimum down payment of 5 percent and no mortgage insurance. Move-in ready homes can be purchased by individuals for a primary residence or as investment properties. Homes can also be purchased with no appraisal, and greater seller contributions for closing costs are allowed under HomePath.

Fannie Mae created the HomePath program to clear its large inventory of homes in foreclosure.

HomePath Loans

Buying a Foreclosure through HomePath

One of the biggest complaints among homebuyers who attempt to buy a foreclosure is finding out their lender will not allow the mortgage, usually because the home requires repairs and will not pass inspection. In these cases, the HomePath program can help.

Fannie Mae does not lend money to homebuyers, but it does put in place guidelines lenders must follow if they want their loans purchased as Fannie Mae. The HomePath program allows lenders to finance properties owned by Fannie Mae with as little as 5 percent down if the borrower will live in the house.

The HomePath loan program also offers renovation loans if you want to buy a home that needs work. You can get financing for up to 97 percent of the home's estimated post-repairs value.

HomePath Mortgage Loans

Benefits of HomePath Loans

  • No home inspection necessary.
  • Low 5 percent down payment required, which can be paid by an employer, through a gift or from savings.
  • No home appraisal necessary, unless you want renovation funds.
  • No competition with investors for the first 20 days that the property is listed. Agents cannot accept investor offers during this time.
  • No mortgage insurance necessary.
  • Buyers with average credit can qualify.
  • Many loan options, including interest-only, adjustable-rate mortgages and fixed-rate loans.
  • Some properties have improvements or repairs completed prior to listing, which may be done by a Fannie Mae-approved contractor or the Home Depot with a 1-year limited warranty.
Mortgage Loans

Is a HomePath Mortgage Right for You?

Despite the many advantages, this program does have downsides. Interest rates, for example, are usually higher than comparable conventional loans. This cost can usually be offset by the fact that the loans do not require mortgage insurance, which can be costly, usually around $150 per month on a $200,000 mortgage.

If you want to buy and improve a foreclosed home, the HomePath program is one of the best options available today.

Benefits of HomePath Mortgages

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020