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What is the downpayment requirement for FHA HomePath homes as an investor...10%?

I read somewhere that the downpayment requirement for HomePath homes is 10% as an investor.  I have not been able to find this on the site anywhere though.  Can anyone confirm that the 10% is still current?
  • February 16 2012 - US
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Answers (12)

Hi all:

  I was just looking into this as it seems like a good deal for investors. However, according to my loan officer, there are caveats to the process that are not fully understood. 

1. As an investor you can get the 10% down structure IF it is not your first investment. 
2. Apparently if you buy a home any other homes you buy within two years you are still considered a first time investor and would NOT qualify for 10% down. 

     I am not 100% sold on #2  as it makes not sense. At the risk of being crass, you can only lose your virginity once. If I buy a home and go to look for a second home I am not a first time home buyer. If I buy home and take advantage of the first time home buyer incentives I don't believe I can use those on my 2nd, 3rd, 4th, etc. homes. 

Can someone clarify this for me?

Regards,
Dennis Gilgalloln
  • May 27 2014
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Profile picture for _manch_
Is the 10% DP available only for Property #1-4? What about #5 and onward?

  • February 18 2013
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thanks for the celan up
  • February 16 2012
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Hi all,

I cleaned this thread up a bit. Technically, some of the posts from Geofrey would fall under self-promotion here in Advice, per our Good Neighbor Policy so I've removed what I felt fell under this category, while trying to leave those that gave pertinent info. It's a judgment call on my part -- yes. I've tried to find the balance ; )

I also removed posts that we're off-topic and "personal". Although I see the points being made on all sides, I'd prefer to keep this on-topic of the original post.

Thanks for understanding, all.
Russ
Zillow Customer Care
  • February 16 2012
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The lack of condo restrictions in addition to no appraisal sounds scary to me! If a complex has 90% investor saturation, lawsuits, and other issues,
( on top of not seeing an appraisal ) it could be very hard to sell later.    
  • February 16 2012
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Yes you are correct . a 10% down payment on investment properties and as little as 3% down for primary residence
  • February 16 2012
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JKReming-

Yes I can confirm that for you. This FNMA program allows for a 10% down payment on investment properties and as little as 3% down for primary residence.  Mortgage insurance is not required with this product and no appraisal either. Of particular interest is the program can be used on otherwise un-financable unwarrantable condos due to the lack of appraisal and condo certification.

The property must be a FNMA owned REO to be eligible  Oh, and FHA and HomePath are two completely different programs JKR.
  • February 16 2012
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I spoke to soon with what Flagstar has to offer for Fannie Mae Homepath.  For a second home purchase it is 90% loan to value and for an investment it is 85% loan to value. 

  • February 16 2012
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Homepath is a program to purchase select Fannie Mae foreclosures.  You can find these properties on www.homepath.com.  Homepath financing does offer as little as 10% down for single family home investment properties.  They also do not require appraisals and they have no condominium restrictions.

  • February 16 2012
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Dave, that is great, share with us what banks will do that.  With Flagstar Bank, that maximum ltv is 75%.  That is great information, if you wan to email personally you may that way when I come across someone who only has 10% down I have a place to direct them.
  • February 16 2012
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10% down Ok for HOMEPATH  rental purchase HomePath v. FHA Financing
  • February 16 2012
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For a Fannie Mae home path it is 75% loan to value with a 700 fico score for an investor.
  • February 16 2012
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