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 real 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.

So what is Fannie Mae HomePath?

HomePath renovation mortgage is a program to assist in selling off the homes owned by Fannie Mae. They provide you with lending on homes with terms that would not be possible without a special program. Fannie Mae has obtained these homes through foreclosure, deed in lieu of foreclosure, or a voluntary turn in. Their goal is to get these sold Asap, so they are aggressively priced and they will allow funding to qualified borrowers that would never be granted under normal circumstances.

Can we finance the upgrades?

As with most foreclosures, improvements are a part of the transaction. Fannie Mae will not do any improvements they don’t feel will enhance the marketability, they expect you to do them. Plan on being the one responsible to handle all improvements.

What makes this program great, is that Fannie Mae HomePath will let you finance the improvements. You still pay for them, but they’re wrapped into your loan, and you can close prior to them being started or finished.

Is Homepath an option for investors?

There are only two true rehabilitation lending products available, and the thing that makes Fannie Mae HomePath stand out, is it’s offered to investors. The FHA 203K program requires you live in the property as your principal residence. There is an increased down payment requirement, but it is very reasonable.

What’s the catch?

Below is a list of a number of the particular points to take into consideration. This list is not all-inclusive, but it can get you started.

• If you put it in the sales contract Fannie Mae HomePath will pay 3.5% towards your closing costs. The advertisements appear as though they offer it, but they don’t, you must ask or you will not get it.

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

• Fannie Mae HomePath does not accept contingent offers. If you need to accomplish something before you can purchase, like sell your house, don’t even bother 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 Properties. 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.