First Guaranty Mortgage, McLean, Va., said it will offer Fannie Mae HomePath and HomePath Renovation Mortgage products to borrowers through both its retail and wholesale channels.
The HomePath program provides low-downpayment financing on sales of REO properties with no requirements for mortgage insurance or appraisals. HomePath properties include single-family homes, condominiums and town houses.
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.
