Fannie Home Path

The Fannie Mae HomePath® program is a fixed-rate, fully amortizing loan program that provides the financing for properties that are owned by Fannie Mae as a result of foreclosure or other similar action such as a deed-in-lieu.

Low down payment minimum of 3% down payment is required which can be funded by the borrower’s own savings, a gift, a grant or a secured loan from a nonprofit organization, state or local government or employer
No appraisal required
No mortgage insurance required
Expanded seller contributions for closing costs allowed

LOAN-TO-VALUE

Primary Residence Purchase

1 Unit 97% LTV with 660 minimum credit score and 80% with 620 minimum credit score
2 Units 85% 660 with minimum credit score and 80% with 620 minimum credit score
3-4 Units 75% LTV with 620 minimum credit score

Second Home Purchase

1 Unit 90% LTV with 700 minimum credit score 80% LTV with 620 minimum credit score

Investment Property Purchase

1 Unit 85% LTV with 700 minimum credit score
80% LTV with 620 minimum credit score
2-4 Units 75% LTV 620 minimum credit score

PROGRAM GUIDELINES

Owner-occupied Primary Residences, Second Homes & Investment properties are eligible:

Purchase transactions of owner occupied 2-4 unit properties are subject to the following:
2 units: Borrowers may not own any other residential property of equal or greater value in the same area in which the units are located. The mailing address and property address must be verified as the same. If this verification cannot be made, the property must be treated as an investment property.
3-4 units: The loan documentation (credit report, income/asset verification) must show the subject property as the borrower’s address. ·

The Homeowner’s insurance policy must show that the mailing address and subject property are the same. The purchase contract must show the borrower’s intent to occupy.

SELLER CONTRIBUTIONS

Interested party contributions, as a percentage of the sales price or appraised value, whichever is less, are limited to the following values.

Occupancy LTV/CLTV Maximum Seller Contributions

Primary Residence up to 97% maximum 6% contribution
Less than 75% LTV maximum 9% contribution
Second Homes 75.0 up to 97% maximum 6% contribution
Less than 75% LTV maximum 9% contribution
Investment Properties All LTVs 2%

Self Employed Borrower

Self employed borrowers must be self employed for a minimum of 2 years
Signed and dated copies of the borrower’s individual (and business if applicable) tax returns, including all schedules, for the pervious 2 years
A YTD Profit & Loss Statement and Balance Sheet.

Non-Wage Earner Requirements

If the borrower’s income is from sources such as retirement, social security, disability, child support or alimony, the file must be documented with evidence of receipt and proof of continuance for a minimum of 3 years.

The following are required for all borrowers

2 year employment history
At a minimum 1 year of income documentation is required and a recent paystub reflecting year-to-date earnings is required for each qualifying borrower
Income must be documented

Foreclosure

Foreclosures in the last 7 years are not eligible.

Bankruptcy

Bankruptcy in the last 4 years is not allowed. Multiple bankruptcies in the last 7 years are not acceptable.

Short Sale/Short Payoff

A short sale or short payoff related to a delinquent mortgage obligation is not allowed within the last 7 years.

Disputed accounts

In order for the loan to be eligible, disputed account(s) must be removed from credit and re-run through DU to obtain Approve/Eligible results.

Collections and Charge-offs

In certain cases, collection and charge-off accounts will be reflected in amounts that have no material effect on the priority of the lien; therefore, collection or charge-off accounts do not have to be paid off at or before closing.

Qualifying Ratios

The standard debt-to-income ratio is 45%. The maximum debt-to-income end ratio is 50%.

Assets Documentation

2 months bank statements

Cash Reserves

First Time Homebuyers Primary Residence 2 months
If the borrower’s current primary residence is pending sale or is being converted to a second home or investment property, reserves of 6 months for both the retained and the subject property are required.

Second home or investment property transactions

For second home or investment property transactions where the borrower has multiple financed properties, the borrower must provide an additional 2 months of verified reserves for each additional property.

GIFTS/DOWN PAYMENT

There is no minimum borrower investment required when the following apply:

Primary residence up to 95% LTV%
2-4 units less than 80% LTV
Second homes less than 80% LTV

A minimum 5% investment from the borrower’s own funds is required when:

Primary Residence more than 95% LTV
High balance mortgages on primary residences with LTVs > 80% · Second homes with LTV > 80% ·

All investment property transactions NOTE:

Gifts not allowed on Investment properties

Rent Loss Insurance

If rental income is used to qualify, 6 months rent loss insurance coverage is required. This includes rental income on 2-4 unit owner occupied properties.

Mortgage Insurance

Mortgage Insurance is not required on the Fannie Mae HomePath®.

Apply Now

This Form cannot be submitted until the missing fields (labelled below in red) have been filled in
HomePath®
Please note that all fields followed by an asterisk must be filled in.
Property State*
County of subject property*
When do you want to close*
Describe your Credit*
Purchase or Pre-Approval*
Do you have 12 months verifiable rental or mortgage history*
Have you ever declared bankruptcy, when was it discharged*
Do you have any foreclosures*
Have you ever had a short sale*
Are you requesting a loan with a spouse or co-borrower*
Co-Borrower Describe your Credit -
Co-Borrower first name -
Co-Borrower middle initial -
Co-Borrower last name -
Co-Borrower address -
Co-Borrower Annual Income -
Co-Borrower Date of birth -
Co-Borrower Social Security # -
Property value*
Loan Amount*
Your first name*
Your middle initial*
Your last name*
Please choose a suffix
Daytime/Work Phone*
Evening Phone*
Cell Phone*
What is your employment status *
What is your email address*
Current mailing address*
City*
State*
ZIP code*
How long have you lived at this address*
Date of birth*
Marital status*
Citizenship status*
Social Security #*
What are your total monthly debt payments, excluding housing*
What is your monthly housing payment*
Annual Income*
How much do you have in checking, savings, stocks, bonds, mutual funds, 401K*
Please tell us about any special circumstances that may apply to your loan request and/or the best time for us to call you

We look forward to working with you.

We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.

Call us 888.958.4228

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www.MORTGAGE-WORLD.com LLC is not an agency of the state or federal government and is not affiliated with the Federal Housing Administration. Licensee will not make any mortgage loan commitments or fund any mortgage loans under the advertised program. All loans arranged with third-party providers. Licensed by the Connecticut Department of Banking Connecticut Mortgage Correspondent Lender MCL-1630225 Licensed by the NJ Department of Banking and Insurance NJ Correspondent Residential Mortgage Lender License Licensed by the Florida Office of Financial Regulation Florida Mortgage Lender License MLD1987 NMLS ID 1630225 www.MORTGAGE-WORLD.com LLC 535 Bergen Blvd. Suite 2 Ridgefield NJ 07657 Call 888-958-5382