HomePath properties are held by Fannie Mae.  When purchasing one of their properties, you can apply for a HomePath mortgage.

The Benefits:

1)  These loans allow you to put down as little as 3% if the home is going to be used as a primary residence.  The ability to put down as little as 3% on the purchase of a new home is amazing.  As you know, when you move into a new home, there will be costs for a lot of “little” things and the ability to keep more money in your pocket is very beneficial. 

2)  No appraisal is required. Many home buyers don’t understand the value of not having an appraisal done on a property.  For example, if you are using FHA financing, the appraisal process is very thorough and if the appraisal notes items on his report such as replace damaged siding, repair rotten wood near windows,or replace smoke detectors, then these items will need to be repaired and a reinspection must be ordered to verify these repairs have been completed.  A typical cost of a FHA appraisal is $445 plus the cost of the reinspection can add up when considering your closing costs.  Not to mention the extra time involved have these tasks accomplished.

3)  Mo mortgage insurance.  I really don’t like mortgage insurance.  I understand it’s value and what it accomplishes but it is money vanishing into thin air.  Personally, I would rather know that every payment I make is going towards paying down the balance on my home.  Typically, rates on HomePath mortgages are higher than a traditional FHA loan.  However, if you take into account the mortgage insurance on a FHA loan, the payments are often very close.

HomePath financing is also available for investors looking for deals on investment properties.  Often, an investor knows that he or she will need to put down 20% when purchasing an investment property.  HomePath Financing allows you to put down only 10%.  As investors know, cash is king.

You can search for HomePath properties at www.HomePath.com .  You can search by zip code,county,etc.  I encourage you to use this website as a tool for your next home purchase.  It will help you narrow down your choices and make your life a lot easier considering all of the tools available on the web today.  Call me or email me with questions anytime.

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