Fannie Mae Homepath properties are quickly moving to the forefront of preferred homes for sale. These properties consist of nationwide foreclosure homes which were financed by Fannie Mae and either repossessed through foreclosure or returned by borrowers through deed in lieu of foreclosure.
The majority of Fannie Mae Homepath properties are offered below market value. Individuals can apply for financing through the lender of their choice or utilize Home Path Mortgage which offers special financing options and minimal down payment requirements.
Presently, Fannie Mae offers closing cost assistance of up to 3.5-percent when buyers purchase homepath properties and close before December 31, 2010. Additionally, buyers who finance Fannie Mae homes through Home Path Mortgage do not have to pay for mortgage insurance or real estate appraisals. This alone can save mortgagors a substantial sum of money.
Fannie Mae Homepath Mortgage also allows buyers to obtain down payment assistance from outside resources. Down payment funds can be a gift from relatives, friends, employers, or charitable organizations. Down payment assistance is generally prohibited when obtaining mortgage loans. The only other loans which allow this option are VA and FHA loans.
Fannie Mae offers two types of mortgage loans. The first is a conventional home loan, while the second provides additional funds for light renovations. Each Fannie Mae property listing includes an icon showing which type of loan the property qualifies for. Properties that require repairs are marked with a Fannie Mae Home Path renovation mortgage logo.
When buyers require funds for repairs or renovations through conventional lenders they often must take out high-interest construction loans which can add hundreds of dollars to the cost of the property. Obtaining renovation loans through Fannie Mae provides borrowers with necessary repair funds without incurring high interest rates.
It is not uncommon for foreclosure property to require repairs. Therefore, buyers should obtain property inspections and appraisals to determine the actual value. Fannie Mae Homepath properties are sold in ‘as-is’ condition. If additional problems are revealed during the inspection, buyers should obtain repair cost estimates.
Fannie Mae rarely enters into price negotiations unless significant damage is discovered. Repair cost estimates and photographs may help buyers obtain a lower price. Purchase offers for Fannie Mae properties are submitted through representing realtors. Buyers often compete with other buyers to purchase discounted properties, so it is best to offer the highest price you’re willing to pay upfront.
Buyers should investigate HUDs Neighborhood Stabilization Program to determine if they qualify for public grants. NSP grants are available to buyers purchasing real estate in areas with staggering foreclosure rates. Available funds vary by state and buyers must submit applications through state agencies.
Fannie Mae Homepath properties can be a good choice for first time home buyers; as a vacation home; or for investment purposes. Fannie Mae encourages real estate investors to purchase properties, but offers ‘first look’ rights to individual buyers. This means buyers have the first opportunity to bid on foreclosure homes, while investors must wait until properties are listed for 15 days before submitting their offer.
Neighborhood Stabilization Program Resource Exchange
Fannie Mae Homepath