I am looking into a HomePath property where I would like to purchase it in cash using privately raised money. However in a conversation with a mortgage lender who claims they know the process, they mentioned that Fannie Mae will still look to at my bank statement to see where the monies came from; if it comes as a gift (as it will look like in my bank statements) then I would first have to pay income taxes on that amount and then look to purchase the home.
Does anybody have any experience purchasing a property through HomePath using private money that was raised? I wanted to give ~10% return to my investors once I flip the home as I will be getting the home at 70% ARV.
Any help would be appreciated, thank you!
I bought a house cash off Homepath 4 years ago, and I do not recall money having to be seasoned, but that was awhile ago. The mortgage broker is probably thinking that the down payment for a mortgaged property has to be seasoned. Why would it matter where a cash offer comes from?
That's exactly what I was thinking, why the heck would it matter where the cash came from. This mortgage guy seemed very confident in this though but I wanted to double check on this, however I cannot find this information on the HomePath website so was hoping fellow BP members have some experience with this.
Hopefully their policy on cash offers hasn't changed from 4 years ago..
@Ankur Patel In my experience, homepath will want to see a proof of funds, but I have never had them source funds of mine.
The process may be different for owner occupants.
We bought a homepath property last year, and they required POF with the offer, but that was all. Sent a bank statement as POF, offer accepted, then we closed. No further investigation.
Your mortgage lender is an idiot, or just a straight liar. You'd be making a financed offer, Unless you simply are removing any financing contingency. Yes, for a "cash offer" the bank will want to see a bank statement, In Your Name, with sufficient funds. A private lender, is still a lender, therefore you are making a financed offer.
As long as the money is green and you have proof of said money, that's all you need.
He said Fannie Mae would require that you first have to pay income taxes????? What? HomePath doesn't care where the money comes from if its a cash offer. We've bought from HomePath, one proof of funds is all they need, they don't get historical bank statements with all the transactions.
The only case I know of where it comes up is if you are trying to get a mortgage, then they look at bank statements and are suspicious of big deposits.
My guess is the mortgage broker was referring to getting a FNMA loan as opposed to purchasing a FNMA Homepath property. As long as you can provide proof of funds that is not more than 30 days old you are good to go
That's what I figured, that they wouldn't care about the source of where the money came from.
Thank you all for reconfirming my suspicion.