Homepath Investor Financing Question?

[Marlan Jones]

Hello All,

I have located a property I am currently interested in purchasing as an investment property via the homepath website. It has the homepath mortgage logo so I assume it is eligble for the homepath financing option I have beeen reading about. The property is listed for $12,000 and needs mostly cosmetic work(which I already have contractors lined up to complete).

My first question pertains to the feasibility of obtaining a loan for such a small purchase amount. I have read several blogs stating banks typically won't touch anything under 30k(yet in my area on the homepath site there are several homes listed under this dollar amount with the homepath logo)

My second question is what are Fannie's downpayment requirements on NOO properties? I have been reading that most are now requiring 15% down as opposed to the old rule of 10%. I am wondering if anyone has had recent experience using this form of financing and can verify if it's 10% or 15%?.

My third question pertains to Homepath financing VS commercial financing of SFH, as I was told by an originator it is extremely costly to use Homepath. Which in all you guys past experience would be the more cost efficient form to finance? (I just recently formed an LLC and ultimately would like to either purchase in the name of the LLC or move the property into the LLC for protection as well as building credit for the LLC.

Thanks in advance for any responses or advice given!!

[J Scott]

Homepath will finance small loans, and from what I've recently heard from my broker, the new downpayment requirement is 15% with PMI.

I would recommend contacting a broker who deals with Homepath loans, and ask what the typical closing costs would be on a purchase like this; I suspect that any time you use financing to purchase a $12K property, the loan costs will be relatively very high.