One of the most frustrating parts of the mortgage process can be the appraisal. We get daily calls from realtors venting about a low value, with questions about a neighborhood with limited comparable values, or just simply asking appraisal 101 questions. While the new HARP guidelines are helping get appraisal waivers for refinances, there is one last purchase loan program that does NOT require an appraisal- the Fannie Mae HomePath Mortgage.
Here are some of the main points you need to know about the Fannie Mae HomePath program:
- No Appraisal Required
- No Private Mortgage Insurance needed, even with less than 20% down
- Primary Residence Buyers:
- Get first 15 days without having to compete with investors
- 640 Minimum credit score with as little as a 3% down payment
- Gift funds are allowed
- Investment Property Buyers:
- As little as 10% down
- Again, no PMI needed
Visit HomePath.com to search for properties in Michigan that are eligible for this great program.
Posts tagged GIFT FUNDS
The last Purchase loan program that doesn’t require an appraisal
96.5% vs 97%
For the last few years, FHA loans have dominated the low down payment space in the mortgage world. We are finally seeing some positive signs in Michigan that things are getting better. One of those signs is that conventional loans have loosened up and are now allowing a 3% down payment with PMI.
Let’s compare both programs to understand the benefits of each.
There is a belief that FHA appraisals have a higher property standard or that more repairs would be required. This is not true as conventional appraisers will be looking for many if not all of the same aspects of the home.
Call us for details as these programs and requirements are constantly changing. The good news is that the feel from lenders is the bottom of the housing cycle is clearly behind us.
Gift funds
Gift funds are often used to off-set the down payment or closing costs when purchasing a home. Here are the basic guidelines that need to be followed for all loan programs:
- Funds must come from immediate family member
- If last name differs, you must prove relationship via birth certificate or marriage license
- A gift letter has to be completed
- You have to prove donor had gift money availiable in account via canceled check or bank statement showing the gift clearing the donor’s account
- You need to show gift funds being deposited into your personal account and show the new balance after deposit
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