What is Home Path Financing

With the number of REO properties increasing, I’m being asked more often about HomePath financing. HomePath financing is available for Fannie Mae REO’s with the HomePath logo found on HomePath.com. I’ve personally noticed a significant increase in questions about this financing so I thought I would cover the basics. First, there are two types: a Home Path Mortgage and a Home Path Renovation Mortgage. The difference being, the Home Path Renovation Mortgage will allow minor fixes to the property.

Here is a quick synopsis of the Home Path Mortgage:

Minimum 3% down for primary residence, 10% down investment property
Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
NO APPRAISAL NEEDED
NO MORTGAGE INSURANCE
High balance (jumbo) and interest only products available
Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
This loan does price with a higher rate than your average 30 year fixed conforming loan. If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points. Keep in mind, much of this can be covered by the seller and there is no mortgage insurance. Of course one can just opt for the higher rate in lieu of the discount points.
Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing - no problem)
The HomePath Renovation Mortgage is currently only offered by 3 lenders nationwide. This will allow for light renovations to the property that can be included into the loan. Information about this specific product is scarce. In general, renovation and construction type of products work like this:

An appraisal is done “subject to” the completion of the repairs. The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower. The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
The loan closes and the repairs are completed by a licensed contractor within a specified amount of time
There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc.
The interest rate is typically higher than your general conforming 30 year fixed
Overall, the Home Path Mortgage is a great loan. I can’t attest to the Home Path Renovation Mortgage but I’m sure it’s great loan as well. If you are “handy” and can do most of the work yourself, you may consider the Home Path Mortgage. When a lender is going to finance renovation work, they will require the work to be completed by a licensed contractor so this sometimes may not work for the “do-it-yourself er”.

6 Historic Willo Homes - Downtown Phoenix

Willo Neighborhood History
Nestled in the very heart of urban Phoenix, Willo was once the epitome of suburbia - a collection of subdivisions on the outskirts of the small, but thriving metropolis of Phoenix. The Willo neighborhood between 7th and Central Avenues can be divided into two sections. J. P. Holcomb used a Homestead Patent in 1878 to acquire and settle the southern portion of Willo between Encanto Blvd. and McDowell. Mr. Holcomb acquired the northern portion, between Thomas Rd. and Encanto Blvd. in 1886 through a Timber Culture Land Patent.

For the next 20 years or so, the land was primarily for agricultural purposes and lay on the outskirts of town. In the early 1900's, four subdivisions were platted, containing home sites with long narrow lots. In the early 1920s, Home Builders, a residential construction firm, built 41 homes in the Bungalow style. During the mid to late 1920s Phoenix, like the rest of the West, experienced tremendous growth and a building boom.

Standards were set for residential construction, and "exhibition houses" (now called model homes) were developed to market the new construction. Most of the building activity in Willo during this period occurred in the N. Kenilworth and Broadmoor subdivisions, and included a "Spanish Rancho Home" exhibition house.

During the 1930's the Period Revival movement brought tremendous variety in architectural styles, including Tudor Revival, Greek Revival, American Colonial Revival, Spanish Colonial Revival and Pueblo Revival. However, the Depression brought construction to a near standstill. The mid to late 1930s and the development of the Federal Housing Administration (FHA) brought construction back to Willo. Construction from this period and later years often featured French Provincial and Monterey styles, with an architectural design that would eventually become what we know today as the Ranch Style house. Construction was also more standardized due to the influence of the FHA and other government-imposed standards. Most of these newer homes are found in the northern section of Willo.

In all, 22 separate subdivisions were platted and developed in Willo by various entrepreneurs from the turn of the century up to the beginning of WWII. Eventually, with the growth of Phoenix over the last century, the individual subdivisions platted by early developers were forgotten and the area blended into one cohesive whole. Unfortunately, the amazing growth of the city resulted in the encroachment of commercial development on what were once quiet suburbs. In the 1980s, residents of Willo successfully lobbied for status as a special conservation district, achieving historic status and assuring that this beautiful part of Phoenix history will be preserved for the enjoyment of future generations.

For Information on Historic Willo Downtown Phoenix Call Linda 602-391-8246