New Program for Bank Owned Properties: HOMEPATH

Fannie Mae, along with Wells Fargo, has created a new loan program designed to assist in the purchase of Foreclosed Properties, or Bank Owned Properties, or REO's. This program, called HomePath, was developed to simplify and expedite the sale of the mounting inventory of these properties. This program will have special appeal to First Time Homebuyers and Investors, as the following key features apply to HOMPATH eligible properties:
97% Financing for Owner Occupies Single Family Residences
90% Financing for Investment Properties
NO Mortgage Insurance Premium
NO Appraisal Necessary
Until now, REOs have been difficult to finance because of appraisal deficiencies. Although the purchase price may have been a "bargain" price, lenders would not lend on properties needing work. Now, with the NO APPRAISAL feature, a "fixer-upper" can be financed through HomePath. Investors may be interested in this program as 90% financing is available. And NO PMI applies to all HomePath loans.
It is important for buyers to understand that proper caution should be taken in evaluating the value of the property. A property inspection is advised so that the buyer is fully aware of any deficiencies that may have otherwise been noted in an appraisal.
A complete list of HomePath Eligible properties in Greater Boston, Massachusetts, or any selected area is available through Wells Fargo Home Mortgage, or by following the link, www.homepath.com.
Loan approval is subject to Wells Fargo underwriting. Contact me for a complete explanation of rules and guidelines.