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.