We have been very busy answering people’s questions about Fannie Mae’s new HomePath Renovation mortgage program – it is one of the few loan programs that I can remember where people actually called me and asked for a
Which means people are starting to get the word out — either through their Realtor, through word of mouth or through traditional media.
Four Questions About The Fannie Mae HomePath Renovation Mortgage
Here are some of the most popular questions and answers that we have been getting regarding the HomePath Renovation mortgage:
Question:
I am an investor, can I use the HomePath Renovation mortgage program?
Answer:
Yes. The HomePath Renovation mortgage program allows for people to use the program if they are planning on doing any of these:
- Occupying the home as their primary residence
- Using the home as a second home
- Treating the home as an investment.
There are different credit score criteria and loan-to-value criteria for second homes or investment property homes. Also, second homes or investment properties may have higher down payments and possibly higher interest rates as well when compared to primary residence loan guidelines.
Question:
What types of renovations are eligible under the HomePath Renovation mortgage program?
Answer:
There really aren’t specific types of home improvements that are limited, but all improvements must be fixed to the property adn add value.
Total funds for the renovation cannot be higher than 20% of the estimated completed value of the home or $30,000 — whichever is less.
Lastly — remember, all renovations must be done within 3 months of closing, so don’t plan on “waiting until summer is over to begin” — that would be too late.
Question:
Can I do the renovation work myself?
Answer:
No. Do-it-yourself repairs intended to be completed by yourself are not eligible for financing within the Renovation loan. All improvements included renovation escrow must be completed by a contractor.
Question:
Does the home have to be owned by Fannie Mae in order to be eligible for the HomePath program?
Answer:
Yes. In order to be eligible for the HomePath renovation mortgage program, the home must be owned by Fannie Mae and you will also need to prove that the home is eligible for the renovation program by printing out the specific page at www.HomePath.com showing the property, the date it was printed and that it has a symbol like this one saying it is eligible:
Arizona Mortgage Rates Update:
We have decided to use Zillow’s new rate widget rather than publish rates through a manual process. Not only are they more accurate now, they also have the ability to change through the day!
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