Homepath 2011 Changes
Fannie Mae has announced enhancements to both HomePath Mortgage and HomePath Renovation Mortgage programs. The changed are in response to consumer feedback and REO market needs. The enhancements will be effective on loans that close after February 1, 2011.
For HomePath Renovation Mortgage only, we will:
- Allow second home (one-unit up to 90 percent LTV) and investment properties (one-unit up to 85 percent LTV, two- to four-units up to 75 percent LTV)
- Expand the maximum renovation component in the loan amount to the lesser of 35 percent of the as-completed value or $35,000 (currently limited to the lesser of 20 percent of as-completed value or $30,000)
For HomePath Mortgage only, we will:
- Clarify that, even though an appraisal is not obtained by the lender for HomePath Mortgages, a market-rent schedule from an appraiser is acceptable for determining rent for qualifying purposes in accordance with standard policy.
- For both HomePath Mortgage and HomePath Renovation Mortgage, we will:
- Waive the investor property loan-level price adjustment (LLPA) for investor purchase transactions that have both an LTV ratio of 70 percent or lower and a credit score of 740 or higher