Four Ways to Save Time and Money When Getting a Fannie Mae Homepath Mortgage.

You have had to see the Fannie Mae HomePath Eligible signs if you are out looking for property. In this article, we will discuss what these are and any need to know information that is critical if you want to save time and money when making an offer.

What is a Fannie Mae HomePath property?

HomePath homes for sale is a program to aid in selling off the properties owned by Fannie Mae. They provide funding on real estate with terms that would not be achievable without a special program. Fannie Mae has obtained these properties through foreclosure, deed in lieu of foreclosure, or a voluntary turn in. Their goal is to get these sold As quickly as possible, so they are aggressively priced and they will allow financing to qualified borrowers that would never be permitted under conventional circumstances.

Are improvements financable?

Fannie Mae HomePath homes, much like other foreclosures, will most likely need some upgrades. Small cosmetic or major structural upgrades will be your responsibilty, so it isn’t worth asking the seller to do them. Just assume that you will be the one that pays for the repairs, not Fannie Mae.

Fannie Mae HomePath will allow you to get contractor estimates and increase your loan amount above the purchase price to cover these costs. So even though you are paying for the improvements, they are financed and that usually makes it more economical for the buyer, in addition to making this program being very exceptional.

Is it available to investors?

Even investors can make use of this program, making this program stand out above FHA’s 203k. The expected down payment is larger, but it’s available. Alternate programs require you to be an owner occupied property, excluding investors.

What is the catch?

While this is by no means a complete list, it is an excellent start.

• That they will pay 3.5% towards closing costs. Make sure it is in writing in the sales contract, otherwise you won’t get the credit.

• You will need a pre-qualification letter from your mortgage company to be submitted together with your offer. Without one, you will not get accepted.

• Contingent offers are not approved. So eliminate the contingencies prior to making an offer.

• Be thorough when checking out a property, because they are sold as is. Make sure you know what you are buying prior to making an offer.

This has been just some of the basics to get you started on knowing more about the Fannie Mae HomePath Homes. If the property is not owned by Fannie Mae, consider using the FHA 203k program. It might be the right fit on a different property.

Knowing more about Fannie Mae HomePath will likely enable you to buy a residence.