Profile picture for morockin

Can I combine a HomePath Renovation Loan with an Energy Efficient Mortgage?

Greetings fellow Zillowers, I am hoping to sign a contract on a home in need of repair in the next week and am planning on using a HomePath Renovation Loan to finance much of the repairs. The home needs roof, dry-wall and some drainage work so I expect to use all of the 30k in renovation financing for these repairs. However, I would also like to install solar on the roof and a grey-water system since I am already doing roof and drainage repairs. To be able to afford this I would need additional funds and was wondering whether it would be possible to add Energy Efficient Mortgage financing on top of the HomePath Renovation Mortgage. Any thoughts our insights would be much appreciated.
  • October 05 2010 - Park View
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Answers (6)

Brutally honest...if you want a sales pitch I am not your guy!

  • February 20 2011
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Profile picture for Ray Stevens
That is correct about Homepath Renovation and appraisals.  I was referring to a Homepath loan without renovation.  Read through the question too quickly.

Glad to know you are always there ready willing to respond in your unique way.
  • February 20 2011
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@ Aaron,

Could you provide some examples of when the K loan is a better option over the Homepath loan.  I have had several situations make sense homepath over 203K.  I find most folks that say that homepath renovation is not the right choice are saying it because they cannot offer the program.
  • February 20 2011
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You should have left it to your homepath lenders...You have no clue what you are talking about!

1. Homepath Renovation loans require an after improved appraisal.

2. Your hurdle will be finding a lender that offers Homepath Renovation and allws for energy efficient improvements.  Just because Fannie Mae offers it..it does not guarantee that lenders will offer it.

If your repairs will exceed 30K you should go with an FHA 203K

  • February 20 2011
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Profile picture for Ray Stevens
It is Sunday and I would normally present this to my Homepath lenders.

What I do know is Homepath is for Fannie-owned properties and therefore no appraisal is needed (and no mortgage insurance).  However, the value is set by Fannie Mae.  Adding more value with energy efficient upgrades may disturb the Homepath "certification".

I will return to this thread tomorrow, 2/20, with answers from my Homepath lenders.

  • February 20 2011
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It's probably too late to help you, but you probably should avoided the HomePath Renovation program and used an FHA 203k. There are far fewer limitations with the 203k program. Most of the purchases we see with the ability to use HomePath Renovation are actually much better usually using an FHA 203k instead.
  • February 19 2011
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