Fannie Mae HomePath now offering Financial Flexibilities

financial_flexibilityEarlier this month, Fannie Mae retired the Fannie Mae HomePath Mortgage program which was available exclusively to homes owned by Fannie Mae as a result of foreclosure. This popular program offered mortgages with no private mortgage insurance and no appraisal was required. Investors were able to buy HomePath properties with reduced down payments.

You can still buy a Fannie Mae HomePath property. You will just have to use a different mortgage program and investors will need to plunk down a traditional down payment.

In lieu of the HomePath Mortgage, Fannie Mae is offering “financing flexibilities” for Fannie Mae owned properties (aka HomePath properties).

  • Interested parties contributions (typically sellers) can contribute up to 6% towards allowable closing cost (rather than the standard 3% on higher loan to values).
  • Borrowers owning 5-10 financed properties are allowed a maximum loan to value of 75% for 2-4 unit investment properties (rather than the standard 70%) on fixed rate mortgages only.
  • In the event the HomePath property is subject to any resale restriction imposed by Fannie Mae, the mortgage is eligible for a new Fannie Mae conforming mortgage.

I’m sorry to see the HomePath mortgage program no longer available. However, with all of down payment assistance programs available, many of my clients would opt not to use the HomePath Mortgage. This will be more of a sting to those wanting to buy investment property less than the standard down payment.

If I can help you with your home purchase or refinance for property (including HomePath homes) located anywhere in Washington state, please contact me!

Conforming Mortgages set to Reduce Minimum Down Payment

Mel_WattAt the MBA Annual Convention this week, Mel Watt, Director of the FHFA announced that Fannie Mae and Freddie Mac will be reducing the minimum down payment.

From his prepared speech:

“To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent. [Read more...]

What May Impact Mortgage Rates this Week: October 20, 2014 – LOWER RATES

mortgageporter-economyLast week, when mortgage rates for the 30 year fixed dipped below 4%, we saw many home owners jumping at the chance to refinance. Mortgage interest rates were very volatile last week, following the roller coaster ride of the stock market. It was reported we had about 10 different price changes in just one day. The only way you can make sure that you lock in a low rate is to…well…lock it! :) This basically means that you have provided the lender with an application and have decided on your mortgage program.

[Read more...]

Rent or Buy in Seattle: Seattle RE Chat [Video]

In this episode of Seattle Real Estate Chat, Jim Reppond and I compare renting in Seattle to buying a home. With rents on the rise and mortgage rates at very low levels, it may be worth considering making the move to buy a home.

[Read more...]

Comparing the 20 Year Fixed Conventional Mortgage to a 15 Year and 30 Year [Mortgage Rate Post]

moneyclockmortgageporterHome owners looking to take advantage of today’s low rates with a refinance or purchase, may want to consider a 20 year fixed conventional mortgage. The 20 year fixed conventional offers lower rates than the 30 year fixed and lower payments than a 15 year fixed mortgage.

[Read more...]

How much can mortgage rates change in a day?

Today was one of the most volatile days we’ve seen in years. I believe it’s the biggest hit the DOW has seen in three years. Mortgage rates started off surprisingly low this morning and this afternoon, they are heading back up. I still have a couple lenders who are still under 4% for a 30 year fixed conventional mortgage, as I write this post (3:09 pm, October 15, 2014).

[Read more...]

Mortgage Rates Drop to new 2014 Lows

The 30 year fixed  is back under 4.000% as I write this post. Rates change constantly and with how volatile the markets have been, we could see mortgage rates bounce back up as quickly as they’ve dropped down.

[Read more...]

I’m a Finalist!

311029_2412128996877_1249122151_nI am humbled to be a finalist in three categories at the 2014 Business and Humanitarian Awards Leadership Awards Gala. This annual dinner is an event that is organized by the Washington Association of Mortgage Professionals (WAMP).  I am a finalist in the following categories: Loan Originator, Media/Marketing Company (Mortgage Porter) and Media/Marketing Individual (Mortgage Porter).

[Read more...]