Discouraged about all the new Fannie Mae and Freddie Mac financing Guidelines, I chose to look into some kind of alternative home loan financing for second time home buyers and investors in the Riverside Real Estate market. Great news! After searching through the Internet, I found an excellent program that is offered by Fannie Mae. It’s HomePath mortgage, and it’s only offered by Fannie Mae Bank Owned residences. I’ve included a few details below:
- Second Home/Investment requires a ten percent down payment! (Practically every loan requires 20-25% down!)
- Owner Occupied is a 3% minimum down payment; however, California requires 5%.
- No Appraisal Required! Property is acceptable as-is!!!
- No Private Mortgage Insurance (PMI)! That means you can buy a more expensive home!
- Less than perfect credit is acceptable (typically, you will need at least a FICO of 660+).
- 1-4 unit homes, Condo’s, PUD’s, Modular, and Manufactured (Double Wide) are all satisfactory.
- Fixed Rate, ARM, Interest Only, 10yr, 15yr, 20yr, 25yr, and 30 yr options.
- Up to 6% seller concessions! (2% for investors)
- Down Payment can be a gift, a grant, or a loan from a nonprofit organization, state or local government or employer.
- Up to 10 financed homes are all right (5-10 residences require 6 months in reserves for each property you own plus the one you want to buy).
- Conventional Rates.
I hope this article has been useful to investors and home buyers who do not qualify for an FHA home loan.
