HomePath Mortgage and HomePath Renovation Mortgages
HomePath Mortgage and HomePath Renovation Mortgage Enhancements
Based on lender feedback and REO market needs, we have enhanced both our HomePath Mortgage® and HomePath Renovation Mortgage®. Enhancements are effective for loans delivered on or after February 1, 2011.
For HomePath Renovation Mortgage only, we will:
- Allow second home (one-unit up to 90 percent LTV) and investment properties (one-unit up to 85 percent LTV, two- to four-units up to 75 percent LTV)
- Expand the maximum renovation component in the loan amount to the lesser of 35 percent of the as-completed value or $35,000 (currently limited to the lesser of 20 percent of as-completed value or $30,000)
For HomePath Mortgage only, we will:
- Clarify that, even though an appraisal is not obtained by the lender for HomePath Mortgages, a market-rent schedule from an appraiser is acceptable for determining rent for qualifying purposes in accordance with standard policy (Selling Guide Section B3-3.2-07)
For both HomePath Mortgage and HomePath Renovation Mortgage, we will:
- Waive the investor property loan-level price adjustment (LLPA) for investor purchase transactions that have both an LTV ratio of 70 percent or lower and a credit score of 740 or higher
- Consider on a case-by-case basis single-loan waivers for investors with more than four financed properties (requests should be submitted by the HomePath lender using the normal single-loan waiver process)
Benefit to Our Buyers
Renovation lending is now available on second homes and investment properties and renovation lending is expanded to up to 35% of the as completed value and no more than $35,000. Please note that renovation eligibility is determined using up to 32% of the as completed value not more than $34,000. The difference between the values in eligibility and underwriting allows for lending flexibility and unexpected renovations and overruns – this should reduce fallout.
HomePath financing for investors not only expanded to renovation lending but also reduced the pricing for an investor with both an LTV ratio of 70 percent or lower and a credit score of 740 or higher. Fannie Mae allows up to four financed properties per investor. With HomePath financing, we will consider above four financed properties on a case by case basis.
For more information on HomePath financing/mortgages, simply email through our secure contact form. RE/MAX of Cleveland, Ohio specializes in HomePath, bank owned homes in Ohio, and renovation mortgages. REO property is popular for investors and those looking to purchase a first-time home with possible repairs at reduced cost. There are many types of home buyers purchasing bank owned homes in Northeast, Ohio. Contact us to learn if buying an REO house is right for you.