Can an investor buy HomePath?
Major real estate investor Fannie Mae’s HomePath Ready Buyer™ program allows potential homeowners to buy a foreclosed property with as little as 3% down with up to 3% closing cost assistance.
What is the minimum credit score for a HomePath mortgage?
620
For a single-family home that is a primary residence, a FICO score of at least 620 for fixed-rate loans and 640 for adjustable-rate mortgages (ARMs) is required.
What is HomePath financing?
The Fannie Mae Homepath loan is a defunct mortgage program which reduced the cost of purchasing a foreclosed property for either personal use, or to “flip” for profit. Homepath loans required no private mortgage insurance (PMI).
What is Fannie Mae eligibility?
Fannie Mae guidelines for conventional mortgages
| Fannie Mae guideline type | Minimum requirement |
|---|---|
| Credit score | 620 |
| Total debt-to-income ratio | Cannot exceed 45%, with some exceptions up to 50% |
| Cash reserves | Up to six months, depending on credit score, down payment amount, DTI ratio, occupancy type and property type |
What credit score does Fannie Mae require?
Because Fannie Mae has a minimum qualifying credit score of 620, this should help more clients qualify together on the loan, allowing for the use of all incomes to determine what they can afford. This also helps clients who are still working on their credit but may be applying with a co-signer.
How do HomePath properties work?
HomePath properties are foreclosed homes owned by Fannie Mae. While some are move-in ready, others are in poor condition and require immediate repairs. Learn what Fannie Mae HomePath properties are, how they work, and what you need to do to purchase one.
Is Fannie Mae better than FHA?
The key comparisons of the loans are that a FHA loan has a lower credit score requirement that is lower to qualify and a 3.5 percent down payment which may be less than a Fannie Mae loan. The Fannie Mae loan has a higher credit score requirement at 620 to 640 which is higher than the FHA loan.