Cash Offer on HomePath

9 Replies

Hello,

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..

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.

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