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Prospect Mortgage Offers Renovation Loans for Fannie Mae REOs

""Prospect Mortgage"":http://www.myprospectmortgage.com, a California-based lender authorized to provide HomePath financing for ""Fannie Mae"":http://www.fanniemae.com, now offers the HomePath Renovation Mortgage.

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""HomePath"":http://www.HomePath.com is Fannie Mae's vehicle for the marketing and disposition of REO properties the GSE has acquired through foreclosure.

The HomePath Renovation financing tool allows homebuyers to purchase a Fannie Mae HomePath property and include up to $35,000 for non-structural repairs and restoration as part of the loan.

Prospect Mortgage, the third largest FHA 203K renovation lender in the nation, says it has seen a rise in the demand for renovation loans as foreclosures have increased. The lender anticipates renovation lending to continue its climb in 2011.

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""The HomePath Renovation Mortgage can be used on any eligible Fannie Mae HomePath property,"" said Steve Somerman, Prospect SVP. ""Buyers can make repairs to upgrade kitchens or baths, fix a leaky roof, or replace worn carpeting, for example.""

Somerman added, ""This is an affordable alternative for many buyers who would otherwise not consider purchasing a Fannie Mae HomePath property because of the condition that these properties are often in.""

The HomePath Mortgage offers a low-interest-rate loan with no mortgage insurance obligations and requires an appraisal to determine the property's market value after improvement completion.

Buyers purchasing HomePath properties as primary residences only put up 3 percent of the purchase price as down payment. Investors can put as little as 15 percent down when purchasing a non-owner-occupied property.

Buyers can use the loan for any single-family primary residence and one- to four-unit owner-occupied and investment property purchases.

""We have an experienced renovation management team in place, training and certification for loan officers originating renovation loans, and a rapid track team that can go from application to closing faster than most other lenders,"" said John Adams, Prospect's national renovation manager.

""Working with an experienced renovation lender is what you need to make the loan process go smoothly and close on time,"" Adams added.

About Author: Heather Cernoch

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