One of the great things about the HomePath Mortgage Loan program is that no appraisal is required by the lender in order to be approved for the loan. However; just because no appraisal is required, doesn’t mean that people won’t want to actually get an appraisal done so they can have the piece of mind that they are getting a good deal on the home they are buying.
For the HomePath mortgage loan program, an appraisal is not required. The value of the property is determined by the contract sales price.
But should you want to obtain an appraisal, here are the rules that will 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 haven’t seen it yet, but I am sure it happens. And if you are considering the HomePath program, now you at least know what the rules are regarding appraisals should you decide to order one… on your own of course.
