Posts Tagged ‘homepath’

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with GMAC Mortgage.  Email Chuck at chuck.walden@gmacm.com or call 678-725-8076. Website is www.ChuckWalden.com

The market is better.  Rates are low.  Home prices are rising.  BUT what if there was more?  Hopefully, I can answer some of those questions and give you a way to move more property, make more money, and do an even better job for your customer.

What if a lender offered to pay the majority of the closing costs?  Would this help your negotiations?  Of course it would.  What if closing costs and seller concessions weren’t an issue?  What if you could throw out the standard 3% seller concessions because it wouldn’t even matter?  Talk about a negotiating tool.  Wouldn’t it be awesome if your buyer could come to the table with just their down payment.  Do you think they would remember that and refer more business to you?

What if a lender guaranteed you would close on time?  I know you’ve heard that before.  BUT, what if they offered to pay your buyer $500 if they didn’t close on time?  Do you know of any lenders that want to pay money to a buyer.  I don’t.  Talk about motivation.

What if a lender communicated with you constantly so you never had to “wonder” what was going on with the transaction?  Have you ever had to pick up the phone and ask?  My bet would be yes.  Wouldn’t it be great if you knew when the file came out of underwriting?  Or, that the appraisal and title are in and there are no issues?  Even if there are issues, you want to know.  You need to know.

What if you felt like you had control over every transaction?  You knew your buyers or sellers were in good hands.  You knew that they were getting the best deal out there.  You knew that you were going to close on time. 

Maybe this sounds like a perfect world to you and there’s no way this could ever happen.  I challenge you to find out.  My job is to make the purchase of a home as stress free as possible.  With some of the lowest rates in the industry, guaranteed to close on time, most of the closing costs paid by the lender, and communication throughout the process……Is there anything else you, your buyer, or your seller needs?  If there is, I would love to hear about it.

If you’re interested, I would love to talk with you to show you how this is a reality.  These tools will no doubt help you to grow your business, receive more referrals, and make more money.  Feel free to email me at chuck.walden@gmacm.com or call me at 678-725-8076 anytime to discuss how I can do this for you.  It’s new to your market so be the first to take advantage and don’t delay.

Pontypool Park Choices

Pontypool Park Choices (Photo credit: Wikipedia)

I deal with first time homebuyers on a daily basis and I love it.  Most first time buyers need guidance, advice, and someone they can trust.  One of the main questions I get asked is what choices do I have?  Or, I want a first time buyer program.  It’s my job to ask the right questions in order to lead them down a path where they can achieve their dream of owning a home.

First time homebuyer choices:

A Conventional Loan – A conventional loan normally requires a 5% down payment.  Underwriting guidelines can be a little more stringent and may require a debt to income ratio (money coming in versus money going out) less than 45%.  Anytime you put down less than 20% you will also have a mortgage insurance premium added to your payment.

A FHA Loan – A FHA loan only requires a 3.5% down payment.  Underwriting guidelines allow for a buyer to have some issues as long as there is a reasonable explanation.  This program does have mortgage insurance added to your monthly payment.  FHA also has Upfront Mortgage Insurance.  Until April 9th, this is 1% of your purchase price.  After April 9th, it will be 1.75%.  This amount is charged to the buyer but is added back into the loan and is financed over the life of the loan.

A HomePath Loan – A HomePath loan only requires a 3% down payment.  HomePath loans are only available for HomePath houses.  These are foreclosed homes owned by Fannie Mae.  This loan does not require an appraisal and does not require mortgage insurance.

A Rural Development Loan (USDA Loan) – A USDA loan does not require a down payment.  It does require the home to be located in a specific area and qualify for this program.  Properties can be located online at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do .  Also, USDA has a cap regarding how much income your entire household receives.  If your household is over this cap, you would not qualify.

Renovation Loans – 203K, HomePath Renovation, and Homestyle.  While these loans do require additional effort on the buyers part, they do help the buyer purchase the home with the repairs or renovations included in the original loan.  After closing, the repairs are made.  These programs are also helping home values and steadily increasing values in neighborhoods.  Each renovation program has its own guidelines and requirements.

VA Loan – A VA loan does not require a down payment.  Being a veteran myself, I always love doing loans for other members of the armed forces.

Buying your first home can be stressful.  Make sure you are dealing with someone who can explain all of your options, clearly, and is willing to hold your hand through the entire process.  If you would like to discuss your options, please feel free to give me a call or email me anytime.  I would love to help you realize your dream.

About the Author:  Chuck Walden (NMLS #148160) is a loan officer with Prospect Mortgage.  Email Chuck at chuck.walden@prospectmtg.com or call 678-725-8076. Website is www.ChuckWalden.com

 

I love HomePath and so should you.  HomePath is simply a branding for homes that Fannie Mae has for sale.  Obviously, these are foreclosures and can represent a great opportunity for first time home buyers, move up buyers, or investors.  The types of homes that are available range from condos and townhomes to typical single family residences.

HomePath properties are eligible for HomePath financing. If you are purchasing the property as a primary residence, you can put down as little as 3%, there is no appraisal required, and last but not least, there is no private mortgage insurance (PMI).  Rates are higher but the advantage of no PMI is well worth it.  If you are purchasing a HomePath property as an investment property, you can put down as little as 10%.  As most investors know, cash is king.  Keeping money in your pocket for most investors is very important.

All of Fannie Mae’s properties are listed at www.homepath.com .  You can search by zip code, town, state, price, and number of bedrooms and baths.  I highly encourage you to visit the website if you are in the market to purchase a new home or investment property.  There are awesome deals to be had by all.  Also, you need to pay attention to the logos  that will be represented below each property.  HomePath has two logos pertaining to their homes.  They are HomePath Eligible and HomePath Renovation Eligible.  If the property has both logos, then the home is available for each type of loan.  HomePath Renovation loans will be addressed in future blog posts.

When you place an offer to purchase a Fannie Mae home, they will require you to submit a Pre Approval letter from an approved lender.  It is very important that you deal with a lender who is familiar with this program and is aware of the inner workings of the transaction.  As always, I look forward to serving you.

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.