Because of the large inventory of homes owned by Fannie Mae, they have designed the HomePath mortgage and the HomePath renovation mortgage programs.
With the HomePath mortgage, no appraisal is required, but with the HomePath renovation mortgage, an appraisal is required.
That said, just because no appraisal is required on the HomePath mortgage program doesn’t mean that people won’t want to order one from time to time for their own piece of mind.
For the HomePath mortgage loan program, an appraisal is not required. The value of the property is determined by the contract sales price.
If for whatever reason you want to order an appraisal for the HomePath loan program, these rules apply:
- You must order the appraisal from an appraiser of your choosing – not one that is recommended by the lender.
- The appraiser must be paid for his services outside of the transaction – it cannot be financed into the loan.
- The lender cannot request a copy of the appraisal. If the borrower provides a copy to the lender, it must be included in the loan file with a note that the appraisal was ordered by the borrower outside of the loan transaction and was not reviewed or approved by the lender.
- The property value reflected in the appraisal will not impact the LTV calculation for the loan.
- The lender must inform the borrower that the purpose of the borrower ordered appraisal and its contents are for the use and information of the borrower only and will not be considered for purposes of the loan transaction.
Do people really order appraisals when getting a HomePath mortgage loan? I personally haven’t seen it yet, but I am sure it happens. Thinking about ordering an appraisal for your HomePath mortgage? Now you at least know the rules – and you are on your own!
