EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.
Earlier this week, a real estate agent emailed me this question regarding Fannie Mae HomePath mortgages:
I have a client looking at a HomePath home in King County. It’s listed at $470,000 and she wants to put down 5%. Is that possible? I had the impression that HomePath still has to conform to standards on loans and the limit would be 417,000.
Here’s my reply:
Fannie Mae Conforming High Balance loan limit is currently at $506,000. With a conforming high balance loan amount (anything over $417,000) we have a minimum 10% down required. Your client can do a sales price of $470,000 with 10% down ($423,000 loan amount) – with no pmi or appraisal required. If they put down a little more to be at $417,000; pricing for the rate may be slightly better.
For loan amounts $417,000 and lower (not “high balance conforming” loan amounts) HomePath will allow 5% down payment for owner occupied and 10% down payment for non-owner occupied. With good credit, there is no private mortgage insurance.
Fannie Mae HomePath mortgages are available on homes that are owned by Fannie Mae due to a foreclosure. You can learn more about Fannie Mae HomePath mortgages by clicking here.
If you are interested in a Fannie Mae HomePath or any mortgage for a home located in the state of Washington, I’m happy to work with you!
We have been told that no matter what, if the home is over 417k then we have to put 20percent down on the fannie may home that we are looking at. I’m so confused. We have called the loan officers and no one has called us back. This info. Came from our realtor, who said it came from his fannie May lender. Any guidance on this would be greatly appreciated.
The loan will be limited to conforming loan limits in your area.
Yes, we are looking in Florida. I thought every state, with the exceptions of California, New York, Alaska and Hawaii were considered a jumbo loan if you went over 417k you had to put 20% down. Looking at the website on Fannie May it says that as of nov, of 2013 that you only have to put 10% down, but my realtor is telling me that you still have to put 20% down. Does this jumbo loan rule apply to Fannie May properties, as well and if so why does it say 10% on their website and when we received their counter offer it said 5% I’m seriously confused and would love a direct answer. No one is returning our call from fannie mays loan dept. any insight, or direction on this would be greatly appreciated.
are you buying this as owner occupied or an investment property? Are you doing a Fannie Mae Homepath?
It is not owner occupied and it is not an investment property. We will move into it. We were approved for a conventional loan, but when we put the offer in to fannie May, the countered with going with their lender (homepath) with a 5% down on 495k
If the loan amount is over $417,000 and is a “high balance conforming” – you will probably need to do 10% down payment. If your in an area that does not offer “high balance conforming” loan limits, then you will be limited to the conforming loan amount of $417,000 for Fannie Mae Homepath – owner occupied or second home. Investment properties have a minimum 10% down payment requirement and is also limited to conforming/high balance conforming loan limits where the property is located.
You may need to find another lender.
We just received a new counter offer and they wrote their proposal up with only 5% down on 490k. The limit is 417k and under here. Why would they write 5% down on 490k if we have to put more down, plus they are not the financors right? I spoke to a loan officer the other day and he said that FM will only Loan up to 417k and you have to put 5% on 417k and then I would also have to come up with the overture. Is this right? Are you familiar with mortgage loans with FM in Florida?
jeanna, If your loan limit is $417,000 for conforming, then that is the highest your loan amount can be for any Fannie Mae product. If you’re offering $490,000 – the loan amount (if you are doing a conforming mortgage – including Homepath) cannot exceed $417,000. Therefore, you cannot do 5% down with that sales price and have a loan amount of $417,000 – you’ll need closer to 16% down in order to use Homepath (and any conforming mortgage) – 490,000/sales price – 417,000/max allowed conforming loan amount = 73,000 minimum down payment for a conforming mortgage. I only originate mortgages on homes located in Washington state – however, this is a standard conforming (Fannie Mae) guideline.
You can still do the HomePath program as long as your loan amount does not exceed $417,000. With HomePath, you probably will not have mortgage insurance and you will not be required to have an appraisal. I recommend comparing the HomePath mortgage to a conforming mortgage (non-Homepath) because the total payments (rates + mortgage insurance, if any) will differ.