There is no PMIВ on a HomePathВ loan, even at 97% of the purchase price.

To compare, PMIВ on a $200K FHA loan is $191 monthly. The result, no PMIВ on Homepath! This is huge. NO PMIВ вЂ“ Fannie Mae has already foreclosed on the home so they do not need foreclosure protection. The down payment on 2nd homes is 10% and 15% on investment properties. Normal conforming loans require the borrower to put down 5% and have the money sourced from their own funds and be in their bank account for 30-60 days. Fannie Mae has created special financing rules to help sell their foreclosures:Дown Payment вЂ“ Only 3% required on a primary residence and can come from flexible sources-gift, employer, etc. When you makes the guidelines for mortgages and you own the real estate to be financed you want to use that power to your advantage. They had to come up with a way to help sell these propertiesВ to convert theВ real estate assets back into a mortgages so they can collect payments. FannieВ is in the business of collecting payments, not owning homes. Given the вЂњmeltdownвЂќ over the past few years Fannie has had to foreclose on a number of properties secured by these mortgages. Fannie then holds the loans to collect payments on these mortgages. Why Did Fannie Mae Create HomePath?ДЇannie Mae buys loans underwritten to their guidelines from lenders and banks all across the country. So letвЂ™s clear it up! HomePath is a special financing program that is in place to make it easier for buyers to purchase a Fannie Mae foreclosure. It seems there is a lot of buzz on the street about the program but also a lot of confusion. I have been asked a number of times by agents and buyers about HomePath.

Fannie mae foreclosures buying process