I have several out of town clients I am working with who want to utilize the Homepath loan program to get into a Sacramento investment property.
Leverage is important when buying an investment property in Sacramento. The less money you have into a deal, the higher return on investment you will get. Not every investor wants to leverage their money though. Many park their cash in an investment with long term growth potential in mind. But for those that like to leverage real estate... the HomePath mortgage program is the way to go.
The best program that I know of for investors right now is the Homepath Mortgage Program. It allows investors to put 10% down on a purchase of a single family home... and there is no mortgage insurance!
It's the best thing going right now for Investors... but there are some rules!
Do I need to buy a specific home to qualify for the mortgage program?
YES... that's the biggest kicker of the program. You can only take advantage of this loan program if you purchase a Fannie Mae owned home. These are homes that have been foreclosed and Fannie Mae is marketing the home for sale to re-coop their loss. To get a complete list of homes available in your area check out www.Hompath.com
How much is my down payment?
The biggest benefit of this program is you only have to put down 10%. There is no other mortgage program like it being offered that I know of. This can make a big impact to an investor's return.
Do I need to pay for mortgage insurance?
If you put less than 20% down on any new mortgage, you will be required by the lender to pay for mortgage insurance. This insurance policy protects the lender because the less money you put down, the more of a risky loan they are funding. The Homepath program does not require mortgage insurance. This means you improve your cash flow every month because you don't have that expense.
What is the interest rate like?
Typically Homepath rates are higher than a mortgage where you are putting 20% down. But the increased interest rate is offset by the fact that you only have to put down 1/2 as much money.
What are the condition of these homes?
For the most part these homes are in great shape. Most of the time the place has been newly painted on the inside and the carpet has been replaced. There are homes that are not in as good of shape... but that is typical for bank owned homes.. it's hit and miss. These homes are sold as-is.
If you are looking to leverage your next Sacramento investment property purchase... Homepath homes could be for you!
I am a local Realtor... who can help!
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