- No appraisal required.
- Up to 97% financing for eligible property types.
- No mortgage insurance required.
- Interest-only payment1 feature and temporary buydown2 may be allowed.3
- Allowed for primary residence, second or vacation home, or investment property.
- Fixed- or adjustable rate mortgages available.
- May be available even if your credit is less–than-perfect.
- Down payment options as low as 3% on primary residences and as low as 10% on investment properties.
- Down payment can come from your own savings, or can be a gift, grant or loan from various sources such as a nonprofit organization, state or local government, or employer.
- No mortgage insurance needed – less costly.
- Only HomePath properties are eligible for a HomePath Mortgage.
- Even though an appraisal is not needed for the mortgage, consider obtaining an appraisal as well as a home inspection for your own protection.
- You cannot build equity through monthly interest-only payments without making voluntary principal payments during the interest only period.
1 Form of loan where the only current obligation is interest and where repayment of principal is deferred. With an interest-only plan, your principal balance is reduced only when you make voluntary principal payments during the interest-only period.3
2 A reduction in the mortgage payment made by a homebuyer in the early years of the loan in exchange for an upfront cash deposit provided by the buyer, the seller, or both
The Interest-Only payment feature will allow you to make minimum monthly interest payments for a set period of time, then full principal-and-interest monthly payments for the rest of your loan term. At the end of the interest-only period, you will be required to pay down the outstanding principal, which will increase your monthly payment, possibly substantially, even if you have a fixed interest rate. You may want to consider making more than the minimum monthly payment during the interest-only period to begin reducing principal. Depending on the product specifics, a loan with the Interest-Only payment feature may result in higher interest rates and Annual Percentage Rates than a traditional mortgage product.