HOME PATH

Home path renovation Loan

Reformation Mortgage

Home path renovation loan is the best choice for those who want to renovate their house. Home path renovation loan is known for its low down payment, and NO mortgage insurance feature savings.

You can purchase a home that is approved under the Home Path Renovation program, usually Fannie Mae Real Estate Owned (REO) properties, for as low as 3% down payment vested for primary residence purchases AND a free appraisal

Properties which come under Homeopath Mortgage logo are only suitable for Homeopath Mortgage.

Home Path Program is accessible for second homes and investment properties as well.
In fact only 15% down is required for Non Owner Occupied / investment loans instead of the usual 25%.

Home path renovation loan is known for its low down payment, and NO mortgage insurance feature savings.

You can purchase a home that is approved under the Home Path Renovation program, usually Fannie Mae Real Estate Owned (REO) properties, for as low as 3% down payment vested for primary residence purchases AND a free appraisal…

Properties which come under Home Path Mortgage logo are only suitable for Home Path Mortgage.

Home Path Program is accessible for second homes and investment properties as well.
In fact only 15% down is required for Non Owner Occupied / investment loans instead of the usual 25%.

HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to

moderate renovation. The loan amount includes both the funds for the purchase and for the renovation.

The borrower works with the lender and the contractors to determine the renovations.

The lender manages the renovation funds. An appraisal is required for this mortgage product and the

renovation amount is based on the appraised as completed value.

Benefits to the Borrower

Special financing to fund both the purchase and light renovation

Low down payment and flexible mortgage terms (fixed- or adjustable-rate)

Down payment (at least 5 percent) can be funded by the borrower’s own savings; a gift; a grant;

or a loan from a nonprofit organization, state or local government, or employer

No mortgage insurance (ask a lender for cost details on loans without mortgage insurance)

Available for primary residence, second homes, and investment properties

 

Renovations

HomePath Renovation financing allows for light to moderate renovation of a property – 35% of the

appraisal - as completed value - and no more than $35,000. Light to moderate renovations allow

the borrower to live in the property while the renovations are completed. The repairs will be

identified in the appraisal, including any cosmetic repairs identified by the borrower.

The HomePath Renovation lending process is:

Loan Processing Phase

  1. Borrower selects property, lender, and contractor.
  2. Lender pre-qualifies borrower, ensures that property is eligible, and approves contractor.
  3. Borrower submits contractor's plans to lender.
  4. Appraiser reviews plans and determines as-completed value.
  5. Lender calculates maximum renovation amount and maximum mortgage amount.
  6. Lender underwrites loan and the loan closes.

 

Renovation Phase

  1. Lender establishes escrow for renovation
  2. Contractor completes work.
  3. Lender inspects to confirm work is completed
  4. Lender disburses renovation funds in escrow to contractor
  5. Upon completion, lender performs the final inspection, obtains title insurance endorsements and reconciles and closes escrow.