Why use Fannie Mae Homepath in Phoenix, Az?

Why use Fannie Mae Homepath financing ?

What incentives are there for home buyers to use this program? A lot of home buyers and real estate agents in Phoenix, Az are left in the dark about Fannie Mae Homepath financing. To understand what this program is and why you would use this lets get to the nitty gritty.

Fannie Mae Homepath is a loan program that is designed for lending 97% of the purchase price on Fannie Mae owned foreclosure properties. How do you know if this is a Fannie Mae owned property you may ask? Well, there are two easy ways to find this out, one being the yard sign in the front yard having a Fannie Mae Homepath sign rider and two the listing on MLS will note this in the description. If you are still unsure, contact me I will tell you. This particular program is considered a “conventional” type mortgage not a government type loan such as an FHA or VA loan. This program requires the buyer to have 3% for a down payment  however this can be a gift from a family member or employer. The program does require a bit higher of a credit score at a 660 versus an FHA loan at 620-640. The home buyer must also be occupying the residence as their primary in order to qualify for 97% loan to value.

Now that we have covered the basics of the Fannie Mae Homepath financing, I want to explain why home buyers would want to pursue this type of loan. To start, unlike the government type loans the conventional loan programs do not follow the “community property” laws in community property states such as Arizona. Let’s use a married couple as an example. With an FHA loan a borrower will have to qualify for the non borrowing spouses debt which in some cases will push the debt to income ratio up to high to approve the loan. Why would a someone be considered a non borrowing spouse? Great question, the answer could be any of the following: The spouses credit score may be too low to meet the loan requirements, or they may not be working and lack qualifying income, or they may have had a recent short sale or foreclosure that would disqualify them from being on the loan.  The beauty of a conventional loan will not factor in the non borrowing spouses debt and will help keep the debt to income ratios down to where the loan can be approved.

The next step is contact a licensed mortgage professional and see if you qualify for this program!    -Justin, Electric Loan Officer

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2 Comments
  1. Hi i wanted to ask about fannie mae. i had a short sale 2 years ago and was late on the last two payment due to financial difficulties. i am trying to buy a house. my financial situation has changed since the short sale 2 years ago and wanted to see if i can qualify for a fannie mae loan?

    • Hello Jose, I would need to see exactly how the credit report reads to determine the length of time before you are able to buy again. Having a good financial position now would definately be a key factor to an approval. Justin@ElectricLoanOfficer.com is my email and my direct line is 623.687.7778 let me know when you have a couple minutes to chat I can fill you in on your options!

      -Justin

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Contact

Justin E. Haines
Mortgage Loan Originator
NMLS# 223834
Phone: 623-687-7778
Fax: 602-680-2378
justin.haines@novahomeloans.com

NOVA® Home Loans
2850 E. Camelback Rd #270
Phoenix, AZ 85016
NMLS#3087 | AZ BK#0902429
We are an equal housing lender