Four Time and Money Saving Tips for Fannie Mae HomePath Mortgages

Fannie Mae HomePath signs are everywhere these days, and if you are looking for a residence to buy, you must have seen them by now. We will cover the items that you need to know before making an offer in the following artcle. These items will save you money and time.

Could you explain what Fannie Mae HomePath is?

HomePath mortgage financing is an effort to sell homes that are owned by Fannie Mae due mainly to foreclosures. The plan will accommodate financing on homes that would not be financeable under traditional lending guidelines. Fannie Mae wants to sell these homes as quickly as feasible, so pricing is appealing to 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 improvements.

Fannie Mae HomePath allows 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 affordable for the buyer, as well as making this program being very special.

Can an investor use HomePath?

Even investors may use this program, making this program stand out above FHA’s 203k. The necessary down payment is bigger, but it’s available. Alternate programs require you to be an owner occupied property, taking out investors.

What is the catch?

There are several things you need to know that will help you get your offer accepted. But here are a few of the bigger tips.

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

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

• 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 is going to allow you to purchase a house.