HomePath Mortgages:
· Minimum Down Payment is 3% but 5% is best.
· Investor’s minimum down payment is 10% down.
· 2 Unit properties require 20% down regardless of occupancy.
· 3-4 units require 25% down regardless of occupancy.
· An appraisal is not required.
· Regardless of down payment mortgage insurance is not required.
· Most closings can occur within 30 days.
· The interest rate is usually .375% higher than market.
· The payment on a HomePath Mortgage will always be lower than an FHA payment.
· Condos do not require HOA certificates. Verification of owner occupancy ratios or percentage of delinquent HOA dues is not required.
· Condotels are not allowed.
· Condos in Arizona , California , Florida , Michigan and Nevada are not eligible.
· Manufactured homes are not eligible.
· Minimum credit score is 660 unless the down payment is 20% then the minimum score is 620. No exceptions.
· The minimum loan amount is $50,000. The maximum loan amount is $417,000.
· The seller can pay up to 6% of the sales price towards the borrowers closing costs. Regardless of loan to value.
· HomePath is a conventional loan product.
HomePath Renovation Mortgages:
· Minimum Down Payment is 3% but the fees to do this will exceed 2% of the loan amount. I require 5% down on all HPR loans.
The sales price on the contract should not include the cost of repairs.
· A list of required repairs will not be provided. The borrower must rely on their inspection.
· Sweat equity is not allowed. Borrowers must hire one credible General Contractor to bid the entire project.
· Multiple bids are not allowed.
· The General Contractor must attend closing.
· The repairs are completed after closing.
· The minimum down payment for investors is 15%.
· 2 unit properties require 25% down regardless of occupancy.
· 3-4 unit properties require 30% down regardless of occupancy.
· Condominiums, manufactured housing and co ops are not eligible.
· Properties in New York , New Jersey , Delaware and North and South Dakota are not eligible.· Miami Dade County in Florida is not eligible.
· Renovation funds can be used for cosmetic renovations.
· The bid must include all required repairs necessary to bring the house up to average condition.
· Barns and pools cannot be added.
· $35,000 is the maximum the borrower can escrow, but additional repair costs can be paid in cash.
· Minimum loan amount is $50,000. However the program doesn’t work if the loan amount is under $100,000.