Q:

How do you qualify for a HomePath loan?

A:

Quick Answer

To qualify for a Homepath loan, an individual should pay 3 percent of the investment as down payment and have at least a 660 credit score if he plans to live in the house, notes Everyday Life. The applicant should have at most a 55 percent DTI score to qualify.

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Full Answer

Applicants for Homepath loans should check FICO scores and submit financial reports and bank statements in order to get a preapproval letter, according to Everyday Life. An individual with a 620 credit score must place a 20 percent down payment to get the loan. An applicant who plans to use the property as a secondary residence should have at least a 660 credit score, but an investor needs at least 700 credit score.

An individual who is bankrupt or has a foreclosure or possible foreclosure can qualify for the mortgage, but only after making a 10 percent down payment, explains Everyday Life. Before presenting the credit report, applicants should not have a mortgage and have no rent arrears that have lasted for more than 60 days in the preceding 12 months.

People who intend to use the property as their primary home should get a monetary gift of the down payment, but individuals who plan to use the house as a second home must bank cash for at least three months, which should be 5 percent of the down payment, notes Everyday Life. The person cannot use the gift on an investment property.

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