On June 24th Fannie Mae announced significant changes coming to financing options on Fannie Mae Owned Properties and has provided notice to lenders that they will be eliminating the variances for HomePath Mortgage and HomePath Renovation Mortgage on October 7, 2014. The variances are the specific parts of the program(s) that allowed for reduced down payment, no mortgage insurance, no appraisal, reduced condo requirements and such.
If you are a buyer planning on purchasing a foreclosed property using a HomePath Mortgage or HomePath Renovation Mortgage variance, you have only a very limited time to get in contract! Be sure to speak to your mortgage lender and broker about the requirements to lock in this financing before October 7, 2014.
Thanks to Roger Gettler at Legacy Mortgage for this update!