Four Money and Time Saving Tips For Fannie Mae HomePath Mortgages

You have had to see the Fannie Mae HomePath Eligible signs if you are out looking for housing. 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.

Could you explain what Fannie Mae HomePath is?

HomePath mortgage rates is a program to aid in selling off the real estate owned by Fannie Mae. They provide you with funding on properties with terms that would not be achievable without a special program. Fannie Mae has obtained these real estate through foreclosure, deed in lieu of foreclosure, or a voluntary turn in. Their aim is to get these sold As soon as possible, so they are aggressively priced and they will allow financing to qualified borrowers that would never be granted under usual conditions.

Can we finance the improvements?

As with most foreclosures, repairs 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 repairs.

What makes this program special is that Fannie Mae HomePath allows you to finance the repairs in the loan and then fund it, setting money aside for the necessary improvements.

Can an investor use HomePath?

There are only a couple of true rehabilitation loans 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’s very reasonable.

Is there catch?

Here’s a list of a number of the particular points to consider. This list isn’t comprehensive, but it will get you started.

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

• You will need a pre-qualification letter from your loan provider to be submitted along with your offer. Without one, you will not get approved.

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

• Real estate are sold as is. Make sure you do your due diligence prior to buying.

This article has covered why the Fannie Mae HomePath is a great program, it doesn’t always fit everyone or every property. Consider the FHA 203K program when you need an alternative rehabilitation loan.

Learning more about FNMA HomePath could assist you to purchase a house.