Thursday, August 6, 2009

HomePath Mortgage Financing Basics for the Investor

These are the basics of HomePath Mortgage that every real estate investor should become familiar with:
  • No appraisal required
  • Can finance up to 85% for Standard loans, 65% of the purchase price for High Balance Loans.
  • No MI is required. This increases the buyer's purchasing power.
  • Up to 2% seller contributions.
  • 1-4 unit, condos, PUD's and modular homes.
  • FNMA REO properties only.
  • Min FICO score of 660 for LTV greater than 80% to $417,000.
  • Min FICO of 580 for LTV less than 80% to $417,000.
  • Permanent Resident Aliens with Alien Registration Card OK, Non Permanent Resident Aliens with legal residence per SSN and US employment OK.
  • LTV to 85%: Fixed Rate programs from 15 to 30 year terms are available in 5 year increments, and 5/1 and 7/1 LIBOR programs to $417,000 for FICOS of 660 and above (FICO’s between 660 and 580 go to 80%) for 1 Units. 3-4 Units require FICO of 580 to 75%.
  • High Balance Loans: LTV to 65% require 740 FICO: for 1-4 units. Fixed Rate programs from 15 to 30 year terms are available in 5 year increments, and 5/1 LIBOR programs.
  • Reserves:6 Months PITIA, and 2 months PITIA on each additionally financed investment property.
  • LIBOR: Assumptions are permitted after first annual adjustment to creditworthy borrowers.
  • Second homes:$417,000 to 90% with 660 FICO, Fixed and 5/1 and 7/1 LIBOR. (80% requires 580 FICO). High Balance to 65% with 740 FICO, Fixed and 5/1 LIBOR.

Wednesday, August 5, 2009

HomePath Mortgage Financing Basics for First Time Home Buyer

Here are the basics of HomePath Mortgage that every first time home buyer should become familiar with:

  • No appraisal required.
  • Can finance up to 97% of the purchase price. (Over 95% is "Homepath Flexible".)
  • No MI is required. This increases the buyer's purchasing power.
  • Gift or grants OK for down payment.
  • Loans from relative employer, gov't or non-profit agency OK for "Homepath Flexible".
  • It is only for FNMA REO properties.
  • Minimum $500 from borrower's own funds.
  • Up to 6% seller contributions for owner occupied and second homes from 75% to 97% LTV
  • Up to 9% Seller contributions for LTV under 75% .
  • 1-4 unit, condos, PUD's and modular homes.
  • Min FICO score of 660 for LTV greater than 80%
  • Min FICO of 580 for LTV less than 80%
  • Permanent Resident Aliens with Alien Registration Card OK (*with 5% down)(*must live and be employed in US for FLEX) , Non Permanent Resident Aliens with SSN and US employment OK.
  • Over 95%, Fixed Rate programs from 15 to 30 year terms are available in 5 year increments to $417,000.
  • Under 95%, 5% Down payment required from borrower's own funds to 80% LTV. (Borrower's own funds for Down Payment requirement waived below 80%.) Over 80% requires 660 FICO, under 80% requires 580 for 1-2 Units. 3-4 Units requires 580 FICO to 75% LTV.
  • Under 95%, Fixed Rate programs 8 to 30 year term in annual increments available, with , and 5/1 and 7/1 Libor to $417,000.
  • High Loan Balance Loans are available to 90% with 700 FICO or to 75% with 660 FICO Fixed Rate for 1 Units. 2-4 Units to 75% LTV with 740 FICO. 5/1 LIBOR is 75% to 680 FICO for 1 Unit and 75% with 740 FICO for 2-4 Units.
  • Temporary Buydowns up to 3% permitted.
(I am a direct lender in AZ, CA, CO, OR, NV, WA )