I've been talking to my banker about homepath loans. My bank is a Homepath lender, but they can't do the renovation loans. So I was looking through the homepath homes near me and very few actually have the "homepath mortgage" sticker next to them. Are the homes WITHOUT the sticker next to them NOT eligible for the homepath loan? I noticed the sticker only seemed to be on the higher priced homes.
What determines if it is homepath eligible is if the home is owned by fannie mae. You can ask a title agent to have access to title profiles so you can pull up title information on each property you look at to determine if fannie mae owns the property OR you can go to homepath.com and look up which properties are Fannie Mae owned to be eligible for home path.
It must be fannie mae owned to be eligible.
Ok, so are the properties listed at homepath.com all Fannie May or not?
yes they are
Only Homepath properties designated on homepath.com as being eligible for Homepath mortgage or Homepath renovation loan with the "sticker" are eligible for Homepath financing.
there's different stickers but all of them on their are eligible for a form of homepath or other maybe not renovation but atleast regular. Homepath for instance
that's what I am trying to clarify. Many of the properties on homepath have no sticker at all. So are they or are they not eligible for a homepath mortgage? Who should I contact to find out?
everything on their site eligible for atleast basic home path you need the special sticker for renovation
Not all properties on the HomePath site are eligible for the HomePath Mortgage. I have professional experience with this and target HomePath as a major source of our property acquisitions.
HomePath sells houses that are in significant need of repair and do not qualify for any traditional financing. Cash and maybe private funds.
HomePath then offers two types of mortgages on other properties that do not have so many needs.
The traditional HomePath loan that they offer on their own properties are properties deemed by their inspectors to be livable and only in need of minor cosmetics at most.
The HomePath Renovation mortgage relates to a property that needs some work, but is still a manageable project by the average consumer or light contractor.
The next step is to find one of the Renovation lenders on their site willing to actually write the note, but I have seen success posted on the BP for this, so it can happen.
I tend to work with a local lender whos reputation I can count on. He is able to write the traditional HomePath mortgage. The benefit to these are that you can:
Buy with 10% down as an investor, or 5% as an owner occ
Not pay for the appraisal, they will use the one that they produced when the got the house back
And, as an investor, you can exceed the traditional limits of FNMA loans by buying HomePath houses and using their loan programs up to a higher limit (20 I think)
Thanks for the update William. How can you tell if a house on homepath.com is eligible for the homepath loan? Is the sticker the final word or is there more digging to do?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!