Kentucky Fannie Mae HomePath Mortgage Loan

NEW Product Announcement:  
Kentucky Fannie Mae HomePath Mortgage Loan®
We are pleased to  announce the introduction of the Kentucky Fannie Mae HomePath® product 

The HomePath® mortgage provides special financing for loan‐to‐value (LTV) ratios up to 97% when the borrower is
purchasing an eligible Fannie Mae‐owned property. Other key features include financing without mortgage insurance
with LTVs greater than 80% and no appraisal report or cost.

Product Overview & Guidelines
 Loan Terms: Fixed Rate Terms only‐ 10, 15, 20 and 30 year terms
 Occupancy: Owner Occupied 1‐4 unit principal residence
 Maximum Loan Amount & LTV Matrix:
Minimum Credit Score Maximum Loan Amount Max LTV Max CLTV Max HCLTV
1
>= 660 $417,000 97% 97% 105%
659‐640 $417,000 80% 97% 105%
1‐ HCLTV: acceptable secondary financing is a Community Second per Fannie Mae guidelines
 Down Payment Requirements:  
o 1 unit principal residence: Minimum 3% (may come from flexible sources per Fannie Mae’s Flexible
Mortgage guidelines)
o 2‐4 unit principal residence: Minimum 5% must come from borrower’s own funds
 Eligible Property Types:
o Single Family Primary Residence
o Site Condo’s
o PUD’s
o All homes eligible for HomePath® financing must be a listed at www.homepath.com, and include the
required HomePath® Mortgage logo

 HomePath® Mortgage ‐ Renovation Mortgage dual logo must be displayed for the property to
be eligible through RMC
 FHA to increase the FHA monthly mortgage insurance #Kentucky#" href="http://louisvillemortgageguide.com/2011/04/19/fha-to-increase-the-fha-monthly-mortgage-insurance-kentucky/">Mortgage Insurance: Not required regardless of the LTV
 Automated Underwriting System: Desktop Underwriter®(DU) must maintain Approve/ Eligible findings and
must be fully documented to the DU findings
o The following DU messages may be disregarded:
 Mortgage insurance is required
 The maximum allowable seller contributions have been exceededPage 2
 Level of fieldwork recommendation
 Property value estimate appears to have an excessive rate of appreciation based on analysis of
recent sale
o My Community Mortgage program is not an acceptable option for DU HomePath® loans
o Loans with a LTV/CLTV greater than 95% must meet the Fannie Mae’s Flexible Mortgage requirements
 Credit Score Requirements:
LTV Credit Score
> 80% 660
80% or less 640
 Reserves: Per DU Findings
 Qualifying Ratios: Debt‐to‐Income: 45%
 Documentation:  
o Standard Full/ Alternative Documentation required
o 4506‐T: properly completed and signed 4506‐T required for all loans‐ Tax Transcript results required
o Reduced documentation is not allowed, regardless of any lesser requirement given by the DU findings
o File documentation must include a printed copy of the home listing from Fannie Mae’s website
www.homepath.com denoting that the property is eligible for HomePath® financing
 HomePath® Mortgage ‐ Renovation Mortgage dual logo is eligible
 HomePath® Mortgage only is not eligible
 HomePath® Renovation Mortgage only is not eligible
 Appraisal Requirements: Not Required
o The LTV ratio will be based upon the sales price
o It is highly recommended that the borrower(s) obtain a home inspection of the property
 Financed Properties: Borrower may finance a maximum of ten (10) properties per Fannie Mae guidelines,
including borrower’s primary residence‐ Refer to the DU findings for more specific requirements
 Escrow Waiver: Permitted for LTV ratios of 80% and less (pricing adjustments will apply)
 Interested Party Contributions: Primary residences‐ 6%
 Pricing: See HomePath® page of daily rate sheets or live pricing at http://mylouisvillekentuckymortgage.com for all applicable
pricing adjustments