Fannie Mae offers new suite of HomePath financing
Goodbye HomePath Mortgage and HomePath Renovation
On October 7, 2014, government-sponsored enterprise Fannie Mae will retire its HomePath Mortgage and HomePath Renovation Mortgage products.
HomePath is the platform for liquidating Fannie Mae real estate owned properties.
Here are those three new financing flexibilities:
1. Interested Party Contributions (IPCs):
For principal residences with LTV/CLTVs greater than 90%, Fannie Mae allows up to 6% interested party contributions (rather than the 3% standard per the Selling Guide).
2. Multiple Financed Properties:
For borrowers owning 5-10 financed properties, a maximum LTV/CLTV ratio of 75% for 2-4 unit investment properties is permitted (rather than the standard 70% per the Selling Guide) on fixed rate mortgage transactions only. LTV/CLTV ratio limits for ARM transactions and High Balance Loans are per the Selling Guide. All other eligibility requirements for borrowers with Multiple Financed Properties continue to apply.
3. Resale Restrictions:
In the event the mortgaged property is subject to any resale restriction imposed by Fannie Mae as the property seller, the mortgage is eligible for sale to Fannie Mae, notwithstanding any Selling Guide restrictions on properties subject to resale restrictions.