9. Program Overview -- Eligible Property Types Property Type Primary Second/Vacation Investment Single-family – detached or attached X X X 2 units X N/A X 3 units X N/A X 4 units X N/A X Low-rise condo X X X High-rise condo X X X PUD X X X Cooperatives N/A N/A N/A Condotels N/A N/A N/A Manufactured Housing X X N/A
10. Program Overview -- LTV Requirements HomePath Mortgage LTV Requirements LTV TLTV CLTV LTV TLTV CLTV Primary Fully Amortizing Interest-Only 1 unit 97 97 97 80 95 95 Co-op na na na na na na 2 unit 80 80 80 na na na 3-4 unit 75 75 75 na na na Manufactured Home 95 95 95 na na na Second Home 1 unit 90 90 90 80 90 90 Co-op na na na na na na Manufactured Home 90 90 90 na na na Investment Property 1 unit 90 90 90 na na na Co-op na na na na na na 2 unit 80 80 80 na na na 3-4 unit 75 75 75 na na na Manufactured Home na na na na na na
Editor's Notes
Thank you for taking the time to meet with me today. I have a very exciting new program to offer your customers that are in the market for a Fannie Mae REO property.
Fannie Mae has thousand of REO properties for sale. In order to move these properties and so communities hit hard by the foreclosure crisis can begin to recover, WFHM and Fannie Mae have teamed up to offer the HomePath Mortgage . The next slide shows an example of a Fannie Mae HomePath property listing.
Good news for your buyers – their options may have just expanded. A real estate owned (REO) property could be just what your buyers are looking for and financing for Fannie Mae REOs is now more attainable. With the new HomePath Mortgage , available from WFHM, your clients may qualify for up to 97% financing on a Fannie Mae-owned REO home. In addition to being one of the select lenders approved to provide the HomePath Mortgage , we are dedicated to helping your clients find the financing that is right for them. We are experienced in closing REO loans, and our Fulfillment staff has been trained on the common REO hurdles, making financing less likely to be held up. Both our Sales teams and Fulfillment team members have been trained on the HomePath program and are ready to process your transactions.
At this time, Wells Fargo will not offer the HomePath Renovation Mortgage Financing program based on the following comparison to the current FHA 203(k) Standard and 203(k) Streamline programs: *The FHA 203(k) Standard program allows for 180 days and the FHA 203 (k) allows for 120 days to complete the renovation project while the HomePath Renovation Mortgage Financing program only allows for 90 days. *The FHA 203(k) Standard program allows the borrower to finance up to the full cost of the renovation, and the FHA 203(k) Streamline allows up to $35,000 for renovation. These higher limits are more expansive than the HomePath Renovation Mortgage Financing which provides a cap of $30,000 or 20% of the “as completed” appraised value, whichever is lower. *Both the FHA 203(k) Standard and Streamline programs offer flexibility with higher LTVs, less restrictive credit scores, and higher allowances for escrowed payments during renovation.
The HomePath Mortgage offers many benefits for your clients. An appraisal is NOT required nor can be ordered by WFHM; however, buyers are encouraged to obtain an appraisal and/or property inspection for their own benefit. If borrower obtains an appraisal, WFHM can not accept or request a copy of that appraisal. The property sales price is what is used for the appraised value. WFHM will require the buyer to sign an appraisal disclosure form at application. No mortgage insurance (MI) is required regardless of LTV – although Fannie Mae-required price adjusters will apply in lieu of MI for LTVs greater than 80%. As little as a 3% down payment is required for eligible home buyers purchasing a primary residence. This provides a lower entry costs for qualified buyers. Additionally, down payment help is allowed, and we will get more into acceptable down payment sources in a later slide. HomePath provides for a deeper prospect pool since it’s available for both owner-occupied borrowers and investors. This product provides you potentially more investors to work with because investors can get into these properties with up to 90% financing.
It’s important to note that this product is only available for select Fannie Mae owned REOs. Not all of Fannie Mae REO properties are eligible for this financing. Fannie Mae determines that and only puts those properties on the HomePath website that are eligible for this financing option. The list of available properties can be viewed at the HomePath web site, and the link is www.homepath.com. At this time WFHM will not finance HomePath properties that have a leasehold or a deed restriction. FICO Score requirements can be as low as 620 for borrowers with 20% or more to put down on the property. Borrowers with low down payment needs may qualify for this product with a FICO Score as low as 660. The HomePath Mortgage is a conventional conforming product, and it is has a variety of fixed and adjustable rate options available. Interest-Only is available for borrowers that qualify and when available with the loan term/product selected.
Low down payment options are available especially for borrowers that are purchasing a Fannie Mae REO for their primary residence. The down payment can be funded by borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. IMPORTANT! Down payment assistance programs (DAPs) are not allowed as a source of down payment for LTVs greater than 95% at this time. When the borrower’s LTV is in the range of 80.01 to 95%, a 5% minimum borrower down payment is required.
Here is an example of a property that is eligible for the Fannie Mae Mortgage Product and listed on the HomePath web site.
This chart outlines the property types that are eligible for the HomePath Mortgage . Remember that in order for the property to be eligible, it has to be listed on the HomePath web site at www.homepath.com. It’s important to note that not all Fannie Mae REOs are eligible for this product.
Note: High Balance Mortgages used in combination with the HomePath Mortgage must meet the more restrictive LTV/CLTV and FICO score limits between the two programs.
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