Fannie Mae HomePath Training Flashcards

Questions and Answers

What are some of the benefits for agents?

Increased opportunities for making dreams come true, more successful closed sales, more commissions.

What is the HomePath Renovation Mortgage?

A HomePath Renovation Mortgage enables buyers to purchase and renovate a Fannie Mae HomePath property in one single loan with one closing.

Where could you go to find eligible HomePath properties?

www.homepath.com

What are the benefits to the borrower?

Low down payment requirement, down payment can come from a wide variety of sources, no MI required. Signup and view all the answers

What property types are eligible to qualify?

Construction status must be existing, 1-4 unit residential properties, condos, modular homes, and various unique home types. Signup and view all the answers

What are the eligible occupancy types?

Owner occupied, second homes, investor owned for SFR; owner occupied and investor owned for 2-4 unit residential properties. Signup and view all the answers

What are the maximum LTV's per each eligible property type?

For SFR: owner occupied - 97%, second homes - 85%, investor owned - 85%. For 2-4 unit properties: owner occupied - 75%, investor owned - 75%. Signup and view all the answers

What repayment terms are available for Fannie Mae HomePath properties?

30 Year Fixed Rate ONLY. Signup and view all the answers

What are considered eligible improvements?

Anything that can be permanently affixed to the property, such as roof repair or replacement. Signup and view all the answers

What are considered ineligible improvements?

Structural or foundational changes of any kind. Signup and view all the answers

How are the renovation costs calculated?

35% of the ACV or $35,000, whichever is less. Signup and view all the answers

What costs can be included in the loan?

Labor, materials, and contingency reserve. Signup and view all the answers

How is the LTV determined?

ACV or acquisition cost (purchase price + renovation costs), whichever is less. Signup and view all the answers

What are the credit score guidelines?

If LTV equals 80% or more, minimum score of 660 for all borrowers; if LTV is less than 80%, minimum score is determined by DU findings. Signup and view all the answers

How is the contingency reserve calculated?

10% if utilities are on when Appraiser views the property; 15% if utilities are off. Signup and view all the answers

What are the reserve requirements?

Owner-occupied as per DU; second homes and investments require 6 months PITI. Signup and view all the answers

What are the guidelines regarding interested party contributions?

LTV/CLTV 75.01% - 97%: 6% for primary residences; LTV/CLTV 75% or less: 9% for primary residences; 2% for investor properties. Signup and view all the answers

What is the maximum loan amount?

$417,000 Signup and view all the answers

On which screen in ProNet do you add the total repair cost?

Transaction Details Signup and view all the answers

What are some of the benefits of a HomePath Renovation Mortgage for the borrower?

All of the above Signup and view all the answers

The maximum loan amount for a HomePath Renovation Mortgage is best determined by which of the following?

35% of as-completed value or $35,000, whichever is less Signup and view all the answers

What is the website address for looking up Fannie Mae owned REO properties?

<a href="http://www.homepath.com">www.homepath.com</a> Signup and view all the answers

What is a HomePath Renovation Mortgage?

A loan that enables borrowers to purchase and renovate any REO property in a single loan with one closing Signup and view all the answers

Study Notes

Benefits for Agents

Increased opportunities to help clients achieve homeownership dreams
Higher rate of successful closed sales
Increased commissions from sales

HomePath Renovation Mortgage

Allows buyers to purchase and renovate a HomePath property with a single loan and closing

Finding Eligible Properties

Search for eligible HomePath properties at www.HomePath.com

Borrower Benefits

Low down payment required
Flexible sources for down payment funds
No mortgage insurance (MI) required

Eligible Property Types

Existing properties with a Certificate of Occupancy
1-4 unit residential homes, condos, modular homes, and various unique homes (row, dome, bale, log cabins)

Eligible Occupancy Types

Single-Family Residences (SFR): owner-occupied, second homes, and investor-owned
2-4 unit properties: both owner-occupied and investor-owned eligible

Maximum Loan-to-Value (LTV) Ratios

SFR: owner-occupied at 97%, second homes and investor-owned at 85%
2-4 unit properties: owner-occupied and investor-owned at 75%

Repayment Terms

30-year fixed rate mortgage available only

Eligible Improvements

Improvements must be permanently affixed, e.g., roof repairs or replacements

Ineligible Improvements

Structural or foundational changes are not allowed

Renovation Cost Calculation

Renovation costs can be up to 35% of the after-repair value (ACV) or $35,000, whichever is lower

Loan Inclusions

Costs covering labor, materials, and contingency reserves can be included in the loan

LTV Determination

LTV is based on the lower of acquisition cost (purchase price plus renovation) or ACV

Credit Score Guidelines

Minimum credit score of 660 required if LTV is 80% or more; otherwise, score determined by Desktop Underwriter (DU) findings

Contingency Reserve Calculations

10% of renovation costs if utilities are on during appraisal, 15% if they are off

Reserve Requirements

Owner-Occupied (O/O) properties as per DU guidelines; second homes and investments require six months of Principal, Interest, Taxes, and Insurance (PITI)

Interested Party Contributions

Contributions vary based on LTV/CLTV:
- 6% for primary residences (LTV/CLTV 75.01% - 97%)
- 9% for primary residences (LTV/CLTV 75% or less)
- 2% for investor properties

Maximum Loan Amount

Loan amount capped at $417,000

Adding Total Repair Cost in ProNet

Total repair costs are entered in the Transaction Details screen

Benefits of HomePath Renovation Mortgage for Borrowers

Max 97% LTV for owner-occupied properties
Loan amounts based on lower of as-completed value or purchase price plus renovation
Renovation funds included in loan amount
Various standard down payment sources accepted
No MI required

Determining Maximum Loan Amount for HomePath Renovation Mortgage

Determined as 35% of as-completed value or $35,000, whichever is lower

Website for Fannie Mae Owned REO Properties

Access information on properties at www.homepath.com

Definition of HomePath Renovation Mortgage

A loan that allows borrowers to purchase and renovate REO properties in a single transaction with one closing process

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Description

Test your knowledge on Fannie Mae HomePath with these flashcards. Learn about the benefits for agents and discover what the HomePath Renovation Mortgage offers. Perfect for real estate professionals looking to enhance their understanding of HomePath properties.