Homepath Financing

[Devan R.]

Can anyone explain how homepath financing works? I see a lot of advertisements as 5% down. Is this for owner occupants and investors as well? If not for investors what's the % for Homepath? I've researched homepath website for this information but haven't received any clear guidance.

[Ralph E.]

@Patrick T. and @Devan R. sorry for using industry lingo. First let me make a correction in that owner occupied purchases required a 5% down payment.

O/O is for owner occupied meaning you're purchasing to live in the property. N/O/O is for non owner occupied purchases meaning you won't live in the property but purchasing as a investor.

LTV stands for Loan to value, a ratio of the outstanding debt on a property to the market value of that property.

S.P. means Sales Price and As Completed Value is the current market value of the property all fixed up. Also known as ARV or As Repaired Value.

2nd hm is for Second Home. Considered a second property that you would have that's used for vacation or live in if you lets say you're bi-coastal.

HomePath Mortgage allows a buyer to purchase a Fannie Mae-owned property with a 5% down payment (as of November 16, 2013), no lender-requested appraisal and no mortgage insurance. Expanded seller contributions towards closing costs are allowed. Available for owner occupants and investors

HomePath Renovation Mortgage allows a buyer to purchase a property that requires light to moderate renovation. The one loan amount includes both the funds for the purchase and renovation — up to 35% of the as completed value, no more than $35,000. Available for owner occupants and investors.

I hope this is clear.