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.

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