What Is ExpressPath Financing?
The Fannie Mae HomePath program provides prospective homeowners and investors with the opportunity to purchase distressed properties at a significant discount with generous financing terms and low fees. Fannie Mae partners with private lenders that underwrite the loans on these properties. PHH Mortgage, a corporation based in New Jersey that offers mortgages in all 50 states, participates in Fannie Mae HomePath through its' proprietary ExpressPath financing program.
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Fees
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Fannie Mae properties financed through ExpressPath offer lower fees than traditional mortgages. As of March 2011, borrowers do not need to pay an appraisal fee and will not pay any prepayment penalties if they pay off their mortgage early. Homeowners also do not have to pay private mortgage insurance if they make less than a 20 percent down payment on a home loan. In addition, PHH Mortgage can offer discounts on closing costs to buyers on a case-by-case basis.
Financing
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ExpressPath financing allows a borrower to make a down payment as low as $500 or 3 percent of sales price of the home. Prospective homeowners can fund this down payment through personal savings, gifts or a personal loan, and PHH will finance the remaining 97 percent of the loan. According to PHH Mortgage, the closing process on a home will usually take less than four weeks as of March 2011, and the organization will close on the loan within 24 hours of underwriting it. Borrowers can select short or long mortgage terms and can choose whether they want an adjustable, fixed-rate or interest-only mortgage.
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Eligibility
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To qualify for the full benefits of an ExpressPath loan, borrowers must purchase a primary or secondary owner-occupied residence from Fannie Mae HomePath. Investors qualify for this financing as well, but they must pay a 10 percent down payment on a HomePath property and will not have closing costs waived. Properties must be owner occupant ready so that the borrower can move right into his new house without having to make serious repairs.
Research
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According to Fannie Mae HomePath, prospective home buyers can contact PHH Mortgage about their options for financing or to become prequalified by calling the company's toll free number at 1-866-614-6246. Office hours run Monday through Friday from 8:30 a.m. to 8 p.m. Eastern time, and borrowers can call on Saturdays from 8:30 a.m. to 5 p.m. Eastern time. To locate properties eligible for ExpressPath financing, home buyers can search Fannie Mae HomePath properties by visiting the official HomePath website.
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