Amla - Lesson 4 ' Unit 4

Front 1

U4 Fannie Mae HomePath Mortgage

Back 1

Fannie Mae HomePath Mortgage:Low Downpayment, No Appraisal Needed, And No PMIFannie Mae Selling Guide Announcement SEL-2014-07 Fannie Mae created a program to assist in foreclosed homes with buyers. This special program is called HomePath. a brand name that refers to foreclosed homes sold by Fannie Mae directly. HomePath is available in all 50 states, and mortgage interest rates are low. The HomePath program was introduced in early 2009 as a way to help Fannie Mae sell homes owned due to foreclosure. Fannie Mae was not designed to "manage properties", so the HomePath program was created to assist in the selling and financing of thousands of homes which Fannie Mae had repossessed. The HomePath program lets buyers buy Fannie Mae-owned homes with simpler mortgage requirements than with a traditional loan. 2 HomePath programs:1. HomePath Mortgage.a. Resembles a traditional home loan you might find from a bank.b. Meant for buyers who are purchasing the foreclosed property to be their primary residence; and for homes, which are generally, move-in ready. 2. HomePath Renovation Mortgage.a. Aimed at buyers buying a home in need of heavier work or repair;b. Real estate investors doing fix-and-flip, for example. HomePath Renovation, a foreclosure buyer can purchase a home and simultaneously borrow the lesser of either 35% of the home's value-after-repairs, or $35,000. The purchase and renovation loans close simultaneously, which reduces the borrower's closing costs.

Front 2

1 Benefits & Elegibility

Back 2

Benefits of HomePath Mortgage1. Requires just 5% down on a purchase for buyers who are purchasing a home to use as a primary residence.2. Requires just 10% down on a purchase for an investment property3. Private Mortgage Insurance (PMI) is not required.4. Home appraisals are not required5. Less-than-perfect credit is allowed -- even below 6606. Buyers can accept up to 6% seller concessions to offset total closing costs7. Downpayments can be gifted from a family member; or, made via a grant or loan from a non-profit organization, state or local government, or employer. Eligibility Requirements:1. Verify income via W-2s and tax returns;2. Verify assets via bank statements;3. Verify credit scores via an official credit report.4. Subject properties must also be marked as Fannie Mae HomePath-eligible.5. Condominium can be non-warrantable (but lenders will require the project to carry minimum insurance to protect against loss).6. Interest-only mortgages are not allowed HomePath Interest Rates are low (comparable to other Fannie Mae and Freddie Mac programs).

Front 3

2 Ready Buyer Education Program

Back 3

Fannie Mae Launches HomePath Ready Buyer Education Program for First-Time Homebuyers: Effective April 14, 2015http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6236.html Up to 3% Closing Cost Assistance Available Upon Completion of Online Education Course HomePath®Ready Buyer™ program, qualifying first-time homebuyers (those who have not owned a home in the last 3 years) to receive up to 3% of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course. On a $150,000 home, this could result in up to $4,500 in savings for the buyer. In addition, Fannie Mae will reimburse the $75 cost of the homebuyer education course at the time of closing. "Purchasing your first home can be an overwhelming process," said Jay Ryan, Vice President of REO Sales, Fannie Mae. "We developed the HomePath Ready Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process. Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership." Fannie Mae has partnered with Framework®, a nonprofit created by the Housing Partnership Network and the Minnesota Homeownership Center, to offer homebuyers a homeownership education course that covers both the complexities of home buying and the responsibilities of owning a home. The course contains nine, thirty-minute sessions and is entirely online. To be eligible for the closing cost assistance and the reimbursement of the training cost:1. Buyers must complete the full online HomePath Ready Buyer training course on www.homepath.com and receive the Certificate of Completion.2. The buyer must be a first-time homebuyer (did not own a property in the past three years) with plans to reside in the property as their primary residence. Auction, pool and investor sales are not eligible.3. The request for closing cost assistance must be made at the initial offer, submitted on or after April 14, 2015. The course must be completed before submitting an offer to qualify. For more information on the course and to sign up, visithttps://www.homepath.com/ready_buyer.html

Front 4

2 Ready Buyer Education Program QUESTION

Back 4

A benefit of the HomePath Mortgage is that home appraisals are not required ( )True( )False ← Wrong answer Explanation:Benefits of HomePath Mortgage1. Requires just 5% down on a purchase for buyers who are purchasing a home to use as a primary residence.2. Requires just 10% down on a purchase for an investment property3. Private Mortgage Insurance (PMI) is not required.4. Home appraisals are not required5. Less-than-perfect credit is allowed -- even below 6606. Buyers can accept up to 6% seller concessions to offset total closing costs7. Downpayments can be gifted from a family member; or, made via a grant or loan from a non-profit organization, state or local government, or employer.