Can I use the HomePath Renovation Mortgage to finance a condo?   You can use a HomePath loan to fund a condo only if the condo is a Fannie Mae foreclosure and is HomePath eligible. You cannot use a HomePath Renovation Mortgage to add improvements to a condo unless the condo qualifies for that program.  Condos eligible under the HomePath Renovation Mortgage will have the logo displayed next to it on the HomePath website or will reference it on the listing.   

A HomePath Renovation Mortgage allows Buyers to finance the purchase price and repairs up to 35% of the "as repaired" value or $35,000 whichever is less, in one loan.   Unlike the regular HomePath loan, an appraisal is required on the HomePath Renovation Mortgage.  Buyers can select the contractors for repairs.  However, contractors must be licensed.  Most lenders offer this loan primarily to owner occupants.   

The HomePath and the HomePath Renovation Mortgages are two special products offered by Fannie Mae to market their inventory of foreclosed homes.  The purpose is to minimize the impact on the neighborhood and sell the home quickly. They are valuable programs that offer special financing incentives; however, buyers of properties that are not eligible for HomePath can still finance the purchase using FHA or regular conventional loan.  If the condo subdivision is FHA approved and you are purchasing the condo as your primary residence, you shoud look into the FHA 203k loan, which will allow you to include the costs of the interior improvements and repairs.