homepath renovation by fannie mae loans in Kentucky
Fannie Mae offers HomePath financing to encourage sales of their units and is fairly common in KY with lots of lenders. However, we have found that interest rates are considerably higher.
- Low down payment of at least 3%.
- As with FHA, the down payment can be “gifted”.
- No appraisal required as Fannie Mae has already done one.
- Seller contributions towards prepaid expenses and closing costs are allowed.
- No Mortgage Insurance (MI or PMI)
- Can be used for second homes and investors. Terms may change.
- Some condo requirements may be waived.
HomePath RENOVATION lenders are rare. We could find no Kentucky lenders or brokers and had to search out of state.
- The HomePath website informs us that a minimum 3% down payment is needed. The lender that we used in Ohio asked for 5% from a homeowner and 10% from an investor.
- The down payment can be gifted, a grant, or a loan from employer.
- There is no Mortgage Insurance required.
- HomePath states that renovation funds up to 35% of completed value are allowed. Our lender had a program that allowed up to 50% of completed value.
- Renovation amount is based on completed value from an appraiser.
- No more than $35,000 in renovations is allowed.
- Available to homeowners and investors…
On both, seller concessions and contributions apply to purchase price; not total loan package.
These are strictly guidelines; your mileage may vary. We would definitely recommend consulting with your loan professional to receive the latest information.