Financing a home is difficult and there are a lot of options out there to look at. Fannie Mae is one such option. Fannie Mae is a government owned enterprise that operates in the secondary mortgage market and tries to offer stability in the housing market. One thing that Fannie Mae offers is the HomePath mortgage.

The HomePath mortgage lets a borrower buy a Fannie Mae-owned property with a low down payment, flexible terms, no lender-requested appraisal and no mortgage insurance. The down payment has to be at least 3%, but it can be funded by your own savings, a gift, a grant, or a loan. The HomePath mortgage also allows for expanded seller contributions for closing costs and is available for primary residences, second homes and investment properties. Many condo project requirements are also waived.

The program is available for people with a credit score as low as 580 at 80% loan-to-value. If your credit score is at 660, you can get a 95-97% loan-to-value. With regard to the closing costs concession, the program allows for up to 6% of the purchase price for closing costs and pre-pays. The typical amount is for this is $5000. Double-wide mobile homes are also eligible for the program, which is limited to homes under $417,000.

Originally from Condo.com – Condo News