Today my national lender announced that they now have the Fannie Mae HomePath Renovation Program. With this program you are able to purchase select Fannie Mae Foreclosed homes listed on http://www.homepath.com and finance renovations into the loan. The renovation costs are limited to 20% of the as repaired or completed value or $30,000 whichever is less. The renovation money is placed into an escrow account and must be completed within 3 months after the closing.
This program allows owner occupant purchases with as little as a 3% down payment. It also allows investment or second home purchases with as little as a 10% down payment.
When you use this renovation product an appraisal will be required. If you do not use the renovation product then one is not required and the property is accepted as-is. I had made an announcement when I first had knowledge of HomePath program.
This product allows the seller to contribute up to 6% of the purchase price toward closing costs. (2% for second home or investment property) This amount may vary based on the down payment amount. There also is no PMI required.
