As many of you know Fannie Mae is one of the largest insurers of mortgages in the nation. They have a lot of homes to sell.  To make it easier for potential homebuyers Fannie Mae introduced their Home Path financing program.  Much like an FHA loan (which Fannie Mae also insures) it was designed to provide an easier “path” to homeownership for qualified buyers.  Some of the highlights of the program include: 

A minimum down payment of 3% required for a principle residence.  Like FHA this can be a gift. 

No mortgage insurance required.  The loan is self insured therefore the rate will adjust depending on the down payment. This avoids the borrower having to deal with a separate mortgage insurance company and their guidelines.

No appraisal needed.  This eliminates a $450-500 fee for the borrower.

You do NOT need to be a first time buyer and Investors can purchase with as little as a 10% down payment.  It can also be a second home.

This “home path” financing is not for everyone but all borrowers should look down this path when available.  The Barringer Team will be able to tell you if the home you are looking at qualifies for this program.  Enjoy looking for your new home.

Sincerely,

Alex Alvarez

Alex Alvarez is the sales manager of Wells Fargo in Tracy CA.  He holds a BS in Business Finance and a Minor in Economics.  He has been in lending since 1988 and has lived in Tracy since 1994.  To contact Alex please call him at 800 399 1820.