The Fannie Mae HomePath mortgage program is a great loan option for Orange County home buyers. And not just first time home buyers, but also move up home buyers and investors. The HomePath mortgage is the similar to the FHA program is some respects, specifically the fact that only 3% down payment is required. There are several advantages the HomePath program has over other mortgage programs.
Fannie Mae HomePath Mortgage Program Advantages for Orange County Home Buyers
- The HomePath program only requires 3% down payment. Even FHA requires 3.5% down, and most other Conventional programs in California require 10% down minimum. Not all lenders offer the 97% Flex plan, but cut off at 95%. If your lender is not offering 97% then check with another Orange County Fanne Mae HomePath Lender.
- No Mortgage Insurance required. This is huge. Mortgage Insurance is required on loans where the down payment is less than 20%. FHA has an Upfront Mortgage Insurance Premium of 2.25% (effective April 4, 2010) along with a Monthly Mortgage Insurance premium of .55%. VA loans do not have a Monthly Mortgage Insurance, but do have a “Funding Fee”, which is similar to the FHA Upfront Mortgage Insurance Premium.
- The HomePath program does not require an appraisal. Fannie Mae designates certain properties for eligibility for this program, and those homes that are eligible will not need an appraisal. This makes the loan process much easier.
- Only 15% downpayment is required for investors. This is a great option for real estate investors. Investors are required to come in with 20% to 30% on most Conventional programs, but with this program only 15% (and with no Mortgage Insurance.)
To be eligible for the HomePath program with less than a 20% down payment, a minimum FICO score of 660 is required. With 20% down payment, a 620 FICO score is required. To find eligible properties, visit the HomePath website, where a search engine will help to narrow down the perfect property. However, before an offer can be made, it is important to get PreApproved for a mortgage first. An experienced Orange County HomePath Loan Officer can prepare customized loan scenarios based on your qualifications and goals.
Authored by Tim Storm, an Orange County HomePath Loan Officer MLO 223456– Please contact my office at Alpine Mortgage Planning, a HomePath Lender for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County Fannie Mae HomePath Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Alpine Mortgage Planning is licensed and supervised by the Department of Corporations under the California Residential Mortgage Lending Act. NMLS 81395.
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