A Homepath Renovation mortgage is similar to a Homepath Mortgage. They are both designed to help homebuyers finance the purchase of Fannie Mae foreclosed properties. There is one major difference between the two loan programs. A Homepath mortgage allows a buyer to finance a Fannie Mae foreclosed property. A Homepath Renovation mortgage allows a buyer to finance the purchase of a Fannie Mae foreclosed property AND the cost of repairs and renovations to be made to the property.
How do you know if a Fannie Mae foreclosed property is eligible for Homepath Renovation financing?
A. A buyer can go to opens in a new windowwww.homepath.com and search Homepath properties. Each property is listed as either Homepath and/or Homepath Renovation eligible. Click opens in a new windowHERE for more information on Homepath eligibility.
How does it work?
A. When using a Homepath Renovation loan, the cost of repairs and renovations are added to the cost/price of the home to determine the buyer’s total cost. Then, the minimum down payment requirement is applied to the total cost to determine a Homepath Renovation buyer’s minimum down payment.
Contract Price of Home + Cost of Repairs/Renovations = Total Cost of Home
$200,000 + $25,000 = $225,000
Total Cost of Home X Down Payment Requirement = Buyer’s Minimum Down Payment
$225,000 X 5% (for owner occupied) = $13,500
How low does Homepath Renovation go?
Owner Occupied Buyer
Second/Vacation Home Buyer
Homepath Renovation mortgages are more complex than a regular Homepath mortgages. It is absolutely critical that you have a Homepath Renovation mortgage expert on your side. Jeremy and his team can help you navigate through the different steps required to close on time on your Homepath Renovation mortgage. Call Jeremy today – 602.435.2149.