Hi all,
My husband and I are in the process of trying to get approved to buy a homepath property, but we have to buy it as investors since we want to rent out our current house and don't have 20% equity or a proven rental history (we also own a duplex that we have had for over 4 years and it does have a proven rental history) ..Anyway we will be scraping together the down payment and closing costs if we are approved since its a 10% down payment that can't be gifted, and I was just wondering if any of the experts here know how long they will require the money to have been in the bank, I'm guessing either 90 or 60 days but I'd like to know for sure, also will the down payment AND the closing costs both have to be "seasoned" money or just the down payment?
Also, do any of you know of any other loan programs that, like homepath, will allow investors to put only 10% down? We were so excited to find out about homepath we had no idea there was anything out there for less then 20% down.
Thanks so much for any help/advice!
Starting Score: 480-550 in 2005
@BrianB_The_Loan_Professor wrote:almost all prgrams require funds used in the loan to be sourced or seasoned which means 60 days in the bank or documentation of where the funds came from.Ok, that's what I assumed but I wanted to double check.
Are you having to count the old home in your debt ratios? Yes, if we try to do owner/occupant. Do you have an fha loan on any of the properties? Yes, our duplex was our first purchase, we lived in it for a short time before buying our current house, and it still has the FHA loan. Do you plan on living in the new home? Yes, but since we do not have 20% equity or a proven rental history on our tax records for our current house we have to buy it as investors.
You may be able to put down less but there would be PMI which I don't believe you have on the home path? Correct no PMI on homepath. Not sure if buying as investment.
@Booner72 wrote:Hi - I just closed on a HomePath last week! I too love it - the 3.5% closing assistance was great. I believe you only need 3% down. No appraisal required if u use their financing.
We didn't use the homepath financing bc the FHA rate was better.
Hi Booner,
Congrats on your new home!
We must buy as investors and that is 10% down with only 2% closing assistance, the 3% down and closing assistance is only for owner occupants 
...We also can't use FHA because you can only have one at a time and we currently have an FHA on a rental.
Question: how much did they come down on price for your house? We are trying to figure out what to offer, I know its a case by case situation but I'm trying to figure out how they usually work counter offers and such. This house is priced at 135,900 and has been on the market for months and has already been up for auction and didn't sell with the highest offer being 80,000. The house has good "bones" but is in terrible, terrible shape, and some major plumbing issues, it would need to be totally gutted to be livable. My husband and his uncle have a contracting business so we would be able to do all the repairs ourselves, and that is the only reason we would consider something in this shape. We are thinking of starting at 95-100k, even though it is very lowball, we believe with the time on market and shape of the house it is a reasonable starting point.
Thanks for any advice!
@BrianB_The_Loan_Professor wrote:Then this is your best bet anything else would require the 20% down
Good Luck
(Read your other post - you are well informed - this is it for your scenario)
Thanks Brian! I wanted to check with some other experts. I am a former real estate agent that left during 2008 to go back to school to be a nurse, so I still try to stay pretty updated on current loan programs/rules and market conditions. But have very little experience with foreclosures because there weren't many around when I was in the business.
A good friend is our mortgage loan broker and she never suggested the homepath program to us while we have been trying to save 20% or find a loan for less down payment, I found it own my own. I've been worried that there are other programs that I am missing, but didn't want to "cheat" on her by using another broker, unless I thought she was missing something else.
@khw wrote:
@Booner72 wrote:Hi - I just closed on a HomePath last week! I too love it - the 3.5% closing assistance was great. I believe you only need 3% down. No appraisal required if u use their financing.
We didn't use the homepath financing bc the FHA rate was better.
Hi Booner,
Congrats on your new home!
We must buy as investors and that is 10% down with only 2% closing assistance, the 3% down and closing assistance is only for owner occupants
Question: how much did they come down on price for your house? We are trying to figure out what to offer, I know its a case by case situation but I'm trying to figure out how they usually work counter offers and such. This house is priced at 135,900 and has been on the market for months and has already been up for auction and didn't sell with the highest offer being 80,000. The house has good "bones" but is in terrible, terrible shape, and some major plumbing issues, it would need to be totally gutted to be livable. My husband and his uncle have a contracting business so we would be able to do all the repairs ourselves, and that is the only reason we would consider something in this shape. We are thinking of starting at 95-100k, even though it is very lowball, we believe with the time on market and shape of the house it is a reasonable starting point.
Thanks for any advice!
Oh - Sorry about the wrong info, I thought 3% applied across the board. The house we bought was advertised for 154 and we got them down to 150. They came down in 2K increments - I finally decided enough was enough, and we agreed on 150 - The house appraised for 157 which I hear houses rarely appriase for over the selling price so I'm pretty happy about that. Our house was turn-key ready and in amazing shape. I know most homepath's aren't like that tho - Good Luck!!