This Bulletin replaces Bulletin 14-08 issued February 10, 2014 in its entirety.

REMN Wholesale is pleased to announce the HomePath and HomePath Renovation programs are being enhanced to include investment properties.  These enhancements are effective immediately.  Additionally REMN Wholesale is providing further clarification of HomePath requirements.

HomePath Program Overview

HomePath allows borrowers to purchase Fannie Mae owned properties.  Advantages to the borrower include:

  • 5% down payment which may be from borrower own funds, gift, grants or secured loan from non-profit, state/local government or employer.

NOTE:  Fannie Mae requires a minimum 5% borrower own funds (gifts/grants etc. may be used after 5% own funds requirement met) on the following:
–       High balance,
–       2-4 unit primary residence with an LTV > 80%
–       Second homes with an LTV > 80%

Reminder, gift funds are not eligible on investment properties.

  • No lender appraisal required.  The borrower may request and pay for an appraisal outside of the transaction but an appraisal cannot be submitted with the loan or the transaction is ineligible for HomePath except for West Virginia.    Properties located in West Virginia will require, at minimum, a 2055, unless DU requires a full appraisal.
  • No mortgage insurance required (a price adjustment will apply to LTVs > 80%)
  • Seller contributions up to 6% of the sales price are eligible on owner-occupied properties up to 95% LTV.

HomePath Renovation Program Overview

HomePath Renovation allows borrowers who purchase a home through HomePath to include funds for minor renovations in the loan amount.

  • 5% down payment which may be from borrower own funds, gift, grants or secured loan from non-profit, state/local government or employer.
  • Renovation funds limited to the lesser of:
    –         35% of the as-completed value, or
    –         $35,000.

NOTE:  There is no minimum amount for repairs

  • Loan amount based on as-completed value, not present value
  • No mortgage insurance required (high LTVs may incur an additional cost)
  • Renovations must add value to the property and be permanently affixed (e.g. roof repair/replacement, interior renovations/improvements such as finishes, flooring, etc.)
  • Renovations must be started within 30 days of closing and completed within 180 days.

HomePath Program Highlights      

  • Properties must be owned by Fannie Mae. To view eligible properties go to www.HomePath.com
  • Eligible property types:
    –       1-4 unit primary residence owner-occupied,
    –       1-unit second home, and
    –       1-4 unit investment.
  • SFR/PUDs (attached/detached), and condominiums
  • Conforming and high balance loan amounts
  • Maximum LTV/CLTV the HomePath matrices.  The HomePath program allows for expanded LTVs (from Fannie Mae standard guidelines) on investment properties with a conforming loan amount as follows:
    –       1-unit investment:  90% LTV/CLTV
    –       2-unit investment: 80% LTV/CLTV
  • Minimum credit score:
    –       LTV/CLTV  > 80% minimum 660
    –       LTV/CLTV ≤ 80% per DU
  • 15 and 30 year fixed rate
  • Subordinate financing eligible.  If using Community Seconds, the program must be approved by REMN Wholesale.
  • DU “Approve/Eligible” Finding required unless the “Approve/Ineligible” Finding is due only to any of the following messages:
    –       LTV > 85% for FRM (fixed rate mortgage) secured by a 1-unit investment property
    –       LTV > 75% for FRM (fixed rate mortgage)  secured by a 2-unit investment property
    –       MI required,
    –       Seller contribution has been exceeded on a principal residence with an LTV/CLTV > 90%
    –       The message is related to the level of fieldwork required, or it indicates the property value estimate appears to have an excessive rate of appreciation based on analysis on a recent sale.

Fees for the HomePath Renovation program must be listed on the GFE as follows:

Fee Type

HUD Line

GFE Block

Draw Inspections ($200 per draw; enter total amount of all draws)

811

Block 3

HUD Consultant Fee

1306

Block 6

Title Update ($100.00)

1114

Block 4

Architect/Engineering Fee/Permit Fees (if applicable)

1300

Block 6

The HomePath guidelines and the HomePath Renovation guidelines have been updated and posted on REMN Wholesale’s website at www.remnwholesale.com.

If you have any questions, please contact your Account Executive.

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