Four Ways to Save Time and Money When Getting a Fannie Mae HomePath Mortgage.
If you are looking for a new property, you have surely seen the Fannie Mae HomePath eligible signs. We are going to discuss what these are, along with some of the have to know items before making your offer. These will help get your offer approved the first time and save you a significant amount of money.
1. Would you clarify what Fannie Mae HomePath is?
Fannie Mae owns several thousand properties via foreclosure, or some version of it, that they are trying to sell. The HomePath program is created to help sell these properties, since nearly all of them have some sort of damage that would prevent them from being financed in a typical manner. Fannie Mae would like to sell these quickly, so they will price them very competitively, while offering funding to help get them off the books.
2. Can we finance the repairs?
As with most foreclosures, improvements are a part of the transaction. Fannie Mae will not do any improvements they don’t feel will enhance the marketability, they expect you to do them. Plan on being the one responsible to handle all upgrades.
Fannie Mae HomePath allows you to get contractor estimates and raise your loan amount above the purchase price to pay for these costs. So even though you are paying for the improvements, they are financed and that usually makes it more economical for the buyer, as well as making this program being very unique.
3. Is it available to investors?
One more thing that sets HomePath above other programs is that you can use this program as an investor. A larger down payment is necessary, but you can do it. The alternate program, FHA’s 203K, does not accommodate investor owned homes.
4. Is there catch?
Even though this is by no means a comprehensive list, it’s a good beginning.
* If you put it in the sales contract Fannie Mae HomePath will pay 3.5% towards your closing costs. The advertisements appear as though they offer it, but they really don’t, you must ask or you are not going to get it.
* You have to be pre-qualified, so get a letter from your loan provider and submit it with the offer.
* The offer cannot be contingent. It will not be approved if it’s. Make sure you have your stuff in order before you make your offer.
* All homes are sold as is. Make sure you know what you are getting into before you buy the residence.
Now that you have some of the basic tools needed go out and find the new home you will call yours.
This article has been about 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.
