homepath home can't be mortgaged??

Question

looked at a house that's through homepath program.

my mortgage broker said "since you have more than 4 mortgaged properties, you can not buy and mortgage a home that's offered through homepath".

is that true?

Lynn McGeein · Answer

If you are looking for the 10% down no PMI investor Homepath, then they may be right -- I think that down payment program is reserved for 1-4.  You can, however, still buy a Homepath property using the 5-10 guidelines, which require larger down payment for the purchase and higher reserves on all properties you own.   The problem we've found is most lenders do not want to bother with the 5-10 guidelines, so you have to search to actually find one who will.

George P. · Answer

i tried a few. they said "we work with these houses only for homeowners. those two programs (homepath and homesteps) are designed for homeowners".

there's always pure cash purchase, but i dont have the cash to buy and renovate these homes. that's why i need to finance them.

Thomas Handy · Answer

Try some local banks.  I've been looking at Homepath homes and also dealing with the 4 home issue.  A local bank will lend to you but you pay a higher rate.  You just have to check out multiple banks.  The big banks won't work, at least the ones I've tried.

George P. · Answer

i called a few lenders from the Freddie mac's site/list. most have never heard of "homesteps", but some know of it. they said "yes homesteps, but no to investors". so i wonder why homepath has "first look/initiative" and then open to investors.

maybe for all cash investors, who knows.

i have hit a dead end. that eliminates over 60% of the houses that are in the area where i look.

George P. · Answer

thanks for replying.

I forgot to mention that i put 25% down, high credit scores, and plenty of reserve for the 1-4 houses to show that i would not default on any of them.

the latest house i am looking at is Freddie Mac and the program is "Homesteps". the broker said, " Homesteps is Freddie Mac’s version of Fannie Mae’s Homepath program.  None of the lenders I work with offer this loan.? My broker is very good at getting answers to questions i have thrown at him in the past, so i am a little discouraged.

I talked to a rep at Hungtington bank, and she said she was unaware of that restriction. But I have not worked with her before.

i just wanted to see if anyone on here is experiencing the same issue. Not having to look at homepath homes eliminates 40% of the homes i can look at.

Carlos Flores · Answer

I saw a doc dated last March from mortgage company.  It gave specific homepath guidelines for the first 4, then 5-10.  You will likely need an underwriting exception, and management or corporate approval, from the lender for properties 5-10.  Stiffer qualifications will apply as well.  I'd call a few other brokers.

homepath home can't be mortgaged??

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