In this current economic climate you need every advantage you can get when it comes to your spending, especially when buying a home. There is a little known loan program from Fannie Mae called "HomePath", which can make qualifying easier and allow you to buy more home. Here's how it works:
The program finances up to 95% of the purchase price with no mortgage insurance and no appraisal required! Typically when you put down less than 20% of the purchase price of a home, you have to pay a monthly mortgage insurance premium that protects the bank in case of default, but it is of no use to you. And, the average per month cost for the mortgage insurance runs about $200.00. With HomePath you don't have this extra monthly cost. This saves you money and enhances your ability to qualify. It's like getting $200.00 a month added to your qualifying income!
The average appraisal cost is $400.00 and since HomePath doesn't require an appraisal, this is another savings for you. The other aspect is that no appraisal means no worries about how the appraisal will come out. This can relieve lots of anxiety and make the process of buying a home much more enjoyable.
The HomePath loan program is only for certain properties owned and being sold by Fannie Mae. You can find these properties by going to Homepath.com or by talking to Tim Bryan at REMAX Parkside Real Estate. Tim can be reached at (805) 591-5239.
Very few lenders are certified to carry the HomePath Loan Program and I am proud to say I am one of them. If you have questions, or need assistance, then please call Steve Allen at Connect Home Loans (805) 237-8811.