Friday, March 18, 2011 - Article by: The Baker Team at Cobalt NMLS190779 - Cobalt Mortgage, Inc. BK-0909801 -
Fannie Mae REO product is called Homepath. There are over 17,000 properies available in CA and AZ. As of March, there are over 11,000 properties listed on Homepath.com in California and another 6,500 in Arizona. There are some unbelievable finds and deals on this site. The best part of all is the financing available on specifically these homes. I am not licensed for the Renovation program and my understanding is there are only a few banks even approved to do them, and it isnt even a clear process. As for the regular Homepath financing program I am approved and have closed over 20 of these transactions this year alone, and more and more every month as the street starts to see more of these properties. Here are some highlights, and remember you want to go to an experienced professional on these loans to make sure they are packaging these loans correctly. Feel free to go to my website. ApproveMeHomepath
oMinimum 3% down for primary residence, 10% down for Second Homes and Investment properties
oNO APPRAISAL NEEDED
oNO MORTGAGE INSURANCE
oMinimum FICO 660
oHigh balance (jumbo) products available
oSeller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
oCondo project requirements are waived
Rates are higher than an FHA or conventional rates at the lowest down payment for example, but the glaring difference is in the payment. Here is an example. $200,000 purchase price with FHA v. HOMEPATH.
$200,000 at 3.5% FHA down payment is a loan of $193,000 at a rate of 4.75% equals a payment of $1,161.60 including Mortgage Insurance
$200,000 at 3% down HomePath is a loan of $194,000 at a rate of 6.00% equals a payment of $1,174.76
So at first glance a 1.25% higher payment sounds bad, but when you factor in the savings on mortgage insurance you are only $13 higher a month. Also remember you are putting a .5% down less, as well as the higher interest you are paying is a tax right off.
The point here is that HomePath homes are a great buy and there are about 17,000 available in CA and AZ. Be careful and talk to an expert that can help walk you through the home buying process like myself, and that is confortable with HomePath rules and guidelines.
The Baker Team at Cobalt Mortgage
Licensed in AZ LO-0912303
Licensed in CA DOC 190779
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