Four Money and Time Saving Answers For Fannie Mae HomePath Mortgage Questions
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 to know if you want to save time and money when making an offer.
1. Would you clarify what Fannie Mae HomePath is?
Fannie Mae owns thousands of properties via foreclosure, or some variant of it, that they are trying to sell. The HomePath program is created to help sell these properties, since most of them have some sort of damage that would prevent them from being financed in a typical manner. Fannie Mae wants to sell these quickly, so they will price them rather competitively, while offering funding to help get them off the books.
2. Can we finance the repairs?
Most of the time, there is some level of upgrades that is needed. It might 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 improvements being paid for and organized by you, not the seller.
Fannie Mae HomePath will allow you to get contractor bids and increase your loan amount above the purchase price to cover these costs. So even though you are paying for the upgrades, they are financed and that usually makes it more affordable for the buyer, as well as making this program very distinctive.
3. Is it available to investors?
Another thing that sets HomePath above other programs is that you can use this program as an investor. A larger down payment is required, but you can do it. The alternative program, FHA’s 203K, does not allow for investor owned properties.
4. There is always a catch, what is it?
While this is by no means a comprehensive list, it’s a good start.HomePath advertises that they will pay 3.5% towards closing costs. Make sure it’s in writing on the sales agreement, otherwise you will not get the credit.
You have to be pre-qualified, so get a letter from your lender and submit it with the offer.
Fannie Mae HomePath does not accept contingent offers. If you need to accomplish something before you can purchase, like sell your home, don’t even bother making an offer.
All real estate under this program is sold as is. Make sure you know what you are getting into before you buy the property.
This has been just some of the basics to get you started on knowing more about the Fannie Mae HomePath Real estate. 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.