Four Time and Money Saving Tips for Fannie Mae HomePath Mortgages

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.

What is a Fannie Mae HomePath property?

Fannie Mae HomePath is a program to aid in selling off the homes owned by Fannie Mae. They provide you with funding on homes with terms that would not be possible without a special program. Fannie Mae has collected 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 normal circumstances.

Can we finance the improvements?

Most of the time, there is some level of improvements that is needed. It may be a small repair that is cosmetic, like new flooring, or it could involve some structural improvements. It is highly unlikely that Fannie Mae will do any upgrades as a condition of your offer. Any improvements they deem necessary will usually be done to help market the property. You just have to plan on all repairs being paid for and organized by you, not the seller.

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

Is Homepath an option for investors?

There are only a couple of real rehabilitation lending products available, and the thing that makes Fannie Mae HomePath stand out, is it is open to investors. The FHA 203K program requires you reside in the property as your principal residence. There is an increased down payment prerequisite, but it is very reasonable.

Is there catch?

While this is by no means a comprehensive list, it’s an excellent start.

• 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 have to ask or you are not going to get it.

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

• The offer cannot be contingent. It will not be accepted if it’s. Make sure you have your stuff in order before you make your 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.

HomePath financing supplies possibilities to buy a property.