Four Time and Money Saving Tips for Fannie Mae HomePath Mortgages
If you are looking for a new house, you have surely seen the Fannie Mae HomePath eligible signs. We are going to discuss what these are, along with some of the have to know items before making your offer. These will help get your offer approved the first time and save you a significant amount of money.
What is a Fannie Mae HomePath property?
Fannie Mae HomePath is an effort to sell homes that are owned by Fannie Mae due mainly to foreclosures. The program will enable lending on homes that would not be financeable under traditional lending guidelines. Fannie Mae needs to sell these homes as soon as feasible, so pricing is attractive to home buyers in order to get offers quickly.
Are repairs financable?
As with most foreclosures, upgrades are a part of the transaction. Fannie Mae will not do any upgrades they don’t feel will enhance the marketability, they expect you to do them. Plan on being the one responsible to handle all upgrades.
What makes this program exceptional is that Fannie Mae HomePath allows you to finance the upgrades in the loan and then fund it, placing money aside for the required improvements.
Can an investor use HomePath?
Something else that sets HomePath above other programs is that you can use this program if you are an investor. A larger down payment is needed, but you can do it. The alternate program, FHAs 203K, isn’t going to accommodate investor owned real estate.
What is the catch?
Even though this is in no way a exhaustive list, it’s a good start.
That they’ll pay 3.5% towards settlement costs. Make certain it is in writing in the sales agreement, otherwise you won’t get the credit.
A pre-qualification letter is required to get an offer accepted. Talk to your mortgage company and have one ready to submit with your offer.
Contingent offers are not accepted. So eliminate the contingencies prior to making an offer.
All real estate are sold as is. Make sure you know what you are getting into before you buy the property.
We have just covered a few of the basics that will get you on your way to owning your Fannie Mae HomePath eligible property. If you are looking for an alternative, consider the FHA 203K loan. It will work sometimes when the other program doesn’t.
Regardless of what the market appears to be, you will find spots to make money with housing. As home financing broker since the 90’s, I recognize the tools that are available to help you get into a home using the best home loan programs accessible.
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