Monday, July 25, 2011

Kentucky Fannie Mae HomePath Renovation Loans: Credit Score Requirements

Kentucky Fannie Mae HomePath Renovation Loans: Credit Score Requirements

KEntucky Fannie Mae HomePath Loans offer home buyers of Fannie Mae owned properties the ability to purchase a home and make renovations to the property after settlement. Fannie Mae loan programs, including the HomePath and HomePath Renovation Loans, have higher credit score requirements than a comparable FHA Loan.

In order to qualify for the lowest down payment requirement, which is 3% down, using HomePath financing all applicants must have a minimum 660 credit score. Borrowers with a credit score between 620 and 659 will require a 20% down payment. Applicants with a credit score of 619 and less will not quality for a HomePath Loan.

In addition the borrower must receive a "DU - Approve Eligible" from Fannie Mae's automated underwriting engine. While borrowers receiving a "DU - EA1 Eligible" finding will still qualify for the HomePath and Home Renovation Loan, they will find that a comparable FHA and FHA Renovation Loan will offer better terms.

The Kentucky HomePath Renovation is available for investors purchases. The investor must put down 25% and have a minimum credit score of 700.

Perspective home buyers should know their middle credit score after making a loan application with a Lender. If the credit scores are slightly below a minimum threshold the Lender should review the options available to improve the borrowers credit scores.

To learn more about your financing options through the Kentucky HomePath and Kentucky HomePath Renovation Loan Programs and steps that you can take to quickly and easily improve your credit scores complete a contact form or call 502-905-3708

Kentucky Fannie Mae owned homes requiring renovation and repairs are often eligible forKentucky  HomePath Renovation Mortgage Financing. Fannie Mae is one of the largest sellers of bank owned foreclosed properties and only offers HomePath Renovation Mortgage Financing on houses that they sell.

HomePath Renovation Mortgage Financing offers home buyers, move-up buyers, and investors: One loan to purchase the house and establish a repair renovation budget

No monthly mortgage insurance premiums

No up front mortgage insurance premiums

Down payments as low as 3% of the combined purchase price and renovation budget

Down payment can be gifted

Seller can contribute up to 6% of the purchase price toward closing costs

Most Property Types Allowed

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