Fannie Mae Homepath Properties
Fannie Mae Homepath Properties can be a great choice for individual buyers and real estate investors. These homes are offered at discounted prices and can be combined with public grants, along with special financing options and low down payment requirements.
Most Fannie Mae Homepath properties are priced below market value. These homes consist of repossessed foreclosure properties that did not sell at public auction and are now owned by Fannie Mae. Buyers can select from a list of nationwide properties or create a personal wish list which allows them to receive notification when the type of property they desire becomes available.
Buyers can apply for special financing terms using Home Path Mortgage lenders. Fannie Mae is currently offering up to 3.5-percent in closing cost assistance to buyers who close their home purchase by December 31, 2010.
Fannie Mae real estate can be a good choice for buyers with imperfect credit. Buyers who possess FICO scores of 600 or higher may qualify for home mortgage loans as long as they can meet the 3-percent down payment requirement.
One special feature of financing through Fannie Mae Homepath Mortgage is buyers are allowed to obtain down payment assistance. The only other home loans which qualify for this option include FHA and VA loans. All other types of home mortgage loans prohibit buyers from obtaining down payment money from outside sources.
Another great feature of financing through Home Path Mortgage is buyers are not required to pay for property appraisal fees or mortgage insurance. This can save buyers several hundred dollars.
One disadvantage of buying Fannie Mae Homepath properties is most homes require some level of repair. While prices reflect costs for damage, buyers should be prepared to hire subcontractors to return the home to livable condition. Homepath properties are sold in 'as-is' condition and are not covered under warranty. Therefore, buyers should conduct due diligence prior to submitting a purchase offer.
Offers to purchase Fannie Mae must be presented to representing real estate agents. Fannie Mae rarely accepts offers for less than the asking price. Oftentimes, buyers compete with multiple buyers to purchase property for sale, so it is recommended to submit the highest offer upfront.
Buyers who purchase Fannie Mae homes which require light repair may want to apply for Home Path Renovation mortgages to obtain additional funds for repairs. Most mortgage lenders require buyers to take out high-interest construction loans for repairs which can add hundreds of dollars to the loan amount. Entering into Fannie Mae renovation loans can provide borrowers with required funds without incurring high interest rates.
Additionally, buyers should conduct research regarding HUDs Neighborhood Stabilization Program which offer public grants for qualified properties. NSP grant funds must be used to rehabilitate the property.
Although Fannie Mae foreclosure homes require repairs, these properties can be a good choice for investment purposes; as a second home; or for first time home buyers. We invite you to learn more about the process of buying foreclosure homes by browsing our real estate article library. New articles are published on a regular basis, so be certain to subscribe to our mailing list to receive updated information.
Published on October 21, 2010 at 02:01 AM
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