HomePath mortgages

19 Replies

Good morning. Has anyone purchased a property using a homepath mortgage? I know the basics & have scrolled through their website. Can you put as low as 5% down if your not planning on occupying? If any members have a successful or even a nightmare experience with using this type of financing, please share. Thanks

Jason,

I successfully used a homepath mortgage as investor. I found the process to be fairly straight forward. Not too different from conventional financing. The biggest headache was in negotiating the sales price because they are often inflexible on prices. You cannot do investor financing with 5% down. If you go the investor route they require 10% down, which is still not a bad deal. They also will not add mortgage insurance into your payment, even if you are putting only 10% down. Good luck!

Following, as I am considering a Homepath property for my next purchase. Thank you in advance to all who can help us newbies!

Yes , don't expect much wiggle room when negotiating a price. Also, it's a government agency so it could take some time for them to get through the entire process

@Erik Palmquist Who did you use for your financing and what was your experience with them?

Erik Palmquist thank you. I appreciate the information. Good luck on future properties

@Patrick G. I used FirstCal for the financing. I went with them because I had used the same loan officer on a prior mortgage. They did a great job and I had no complaints.

@Erik Palmquist thanks for the insights! I'm looking at my first deal right now and considering HomePath as well. Did you use the listing agent to write up your offer????

Originally posted by @Erik Palmquist:
Jason,

I successfully used a homepath mortgage as investor. I found the process to be fairly straight forward. Not too different from conventional financing. The biggest headache was in negotiating the sales price because they are often inflexible on prices. You cannot do investor financing with 5% down. If you go the investor route they require 10% down, which is still not a bad deal. They also will not add mortgage insurance into your payment, even if you are putting only 10% down. Good luck!

Do you have a job and invest on the side or did they approve you based solely on real estate income? I wasn't able to get Fannie Mae financing because I'm a full time investor and at the time I applied, our partnership was still in the red.

From Homepath's Website

5% Down
Homepath Owner Occupied

10% Down
Homepath Investment (SFH only)

20% Down
Homepath Investment (Duplex only)

25% Down
Homepath Investment (3-4 Unit Buildings)

@Luli Passet I did not use the listing agent because I have an agent whom I normally use but I know you can most likely negotiate a better price if you do use the listing agent. When calculating the negotiated price Fannie Mae will only look at the total once everything has been factored including seller concessions, commissions etc... If you can negotiate a discounted commission it should help bring the price down.

@Andrew Syrios I do have a full time job and I invest on the side. It certainly made it much easier to get financing. Those lovely underwriters love seeing W2 income because it is perceived to be so much more stable! I plan on keeping a full time job as long as I can for that exact reason.

Originally posted by @Erik Palmquist:

@Andrew Syrios I do have a full time job and I invest on the side. It certainly made it much easier to get financing. Those lovely underwriters love seeing W2 income because it is perceived to be so much more stable! I plan on keeping a full time job as long as I can for that exact reason.

That is the one part I miss about not having a W2...

@Erik Palmquist thanks Erik! Those are great points!

@Andrew Syrios How did you get around at the beginning? Did you just partner with job-holding people???

Is it possible for me to get a 5% down loan for a 3 or 4 unit owner occupied property with HomePath or any other program for that matter?

Can anyone please kindly answer @Arvin Daeizadeh 's question? I am also curious to know about this as well. Much appreciated for all your assistance with this. It's been really addictive building real estate knowledge through forum like this!!!

Unfortunately you need 25% down for a 3-4 until property even if owner occupied.

Below is a clip from one of my lenders about LTV with HomePath.

LTV/CLTV/CREDIT SCORE CONFORMING LIMITS (2096-25):

LTV: OCC: UNITS: CREDIT:

95%     Owner                1 unit                   660

95%     Owner                1 unit                   660

80%     Owner                1-2 units              620

75%     Owner                3-4 units              620

90%     2nd Home          1 unit                  660

80%     2nd Home          1 unit                   620

90%     Investment         1 unit                  660

80%     Investment         1 unit                 620

75%     Investment         2-4 units           620

@Robert Bowles

Excellent! Thanks a bunch!!!

Happy Thanksgiving!

Please correct me if I am wrong but I believe Homepath mortgage financing was eliminated in October the 14th or 16th. This retiring these low downpayment options.

This post has been removed.

Officially Fannie said they were wrapping it up on the 7th of October.  I have lenders still pricing it out, I have not sent anything that way in a while, so not really sure.

I looked up a few updates, and you are correct.  Currently can only be used for contracts signed on or before the 6th.

Sorry to mislead anyone.

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