Prospect Mortgage has been selected to offer financing as part of Fannie Mae’s HomePath Renovation Mortgage.
The HomePath Renovation Mortgage allows borrowers to receive a maximum loan of $35,000 to purchase a property that requires moderate non-structural renovation. Buyers can make repairs to upgrade kitchens or bathrooms, fix a leaky roof or replace worn carpeting for primary residences, second homes and investment properties.
Borrowers who obtain a loan with the HRM only have to make a 3% downpayment, while investors can put as little as 15% down when purchasing a non-owner occupied property.
The loan requires no mortgage insurance from the borrower, but an appraisal is used to determine the property’s market value after improvements are made.
“This is an affordable alternative for many buyers who would otherwise not consider purchasing a Fannie Mae HomePath property because of the condition that these properties are often in,” said Steve Somerman, senior vice president at Prospect Mortgage.
The Sherman Oaks, Calif.-based residential retail lender is also authorized by the government-sponsored enterprise to provide loans for its HomePath Mortgage program.
