Reasons to Consider Fannie Mae Homepath for Home Buying Needs
Article by Simon Volkov
Reasons to Consider Fannie Mae Homepath for Home Buying Needs – Real Estate – Buying a Home
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Fannie Mae Homepath offers a variety of residential foreclosure properties at reduced prices. Buyers who finance these properties through Home Path Mortgage can obtain special incentives along with a low down payment requirement. Additionally, many Fannie Mae homes qualify for government grants through HUDs Neighborhood Stabilization Program.
Fannie Mae Homepath properties consist of repossessed houses acquired through bank foreclosure or deed in lieu of foreclosure. When lenders permit deed in lieu agreements, borrowers are allowed to give their property back to the bank instead of enduring the foreclosure process.
Home Path Mortgage is a good financing option for borrowers whose credit isn’t the best. Real estate investors are using Home Path to finance Fannie Mae homes requiring moderate repairs.
Buyers can apply for renovation loans which include additional funds for repairs, as opposed to taking out high-interest construction loans. Visitors to the Fannie Mae Homepath website can easily identify properties that qualify for renovation loans, as they are designated with a Home Path Renovation Mortgage logo.
Most foreclosure homes are in need of some level of repair. Borrowers who are struggling to meet loan obligations typically cannot afford to make necessary repairs. Sadly, foreclosed homeowners often intentionally inflict property damage as their way of ‘getting even’ with mortgage lenders.
When banks repossess houses they do not make repairs unless an urgent need exists. When banks do engage in repair work, materials are not covered under warranty. As with all types of foreclosures, Fannie Mae Homepath properties are sold in as-is condition. Buyers should obtain home inspections and repair cost estimates to determine if the home is worth the asking price.
Prior to submitting a purchase offer for Fannie Mae homes, buyers must apply for prequalified financing; unless paying with cash. Since properties are priced below market value, it is not uncommon to compete with multiple buyers. For this reason, it is wise to submit the highest amount you’re willing to pay upfront.
The Department of Housing and Urban Development offers government grants through their Neighborhood Stabilization Program. Funds are dispersed to each state and available to qualified buyers who purchase real estate in communities with high rates of foreclosure. NSP grant money must be used to purchase, rehab or resell foreclosure houses or vacant land. Program details are available at HudNSPHelp.info.
Many people are still hesitant to buy real estate for fear market prices will continue to drop. This mindset could place buyers at risk for losing out on great deals. While it is true there is still uncertainty regarding the real estate market, there are plenty of affordable homes and affordable finance options available. Fannie Mae Homepath is a good place to start looking for discount properties.
Those in need of help with financing may find Home Path Mortgage provides the solution. Whether you are looking for a primary residence, second home, or investment property, consider buying Fannie Mae Homepath foreclosure real estate.
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