Fannie Mae Homepath Properties
Fannie Mae Homepath properties are quickly moving to the forefront of homes sold due to discounted prices and special financing options. According to Terry Edwards, Executive Vice President of Fannie Mae's Credit Portfolio Management, "More than 87,000 families have purchased HomePath properties in the first half of 2010."
Fannie Mae Homepath properties encompass a mix of foreclosure homes scattered across the nation. Prices start as low as $5,000 for single family residences, but the average home price hovers around $139,000 for a two bedroom, one bath home.
Fannie Mae homes are acquired through bank foreclosure, deed in lieu of foreclosure, and forfeiture; meaning property owners abandon their home without adhering to proper protocol. Homepath properties are sold in as-is condition and are not covered under any warranty. Therefore, buyers should obtain professional property inspections and real estate appraisals to determine if the asking price is appropriate.
Fannie Mae generally does not engage in price negotiations with HomePath properties. However, if major repairs are discovered during the inspection process, buyers should include photographs and repair estimates with their purchase offer.
Presently, Fannie Mae is offering special incentives to buyers who purchase Home Path properties prior to December 31, 2010. Buyers can obtain up to 3.5-percent in closing cost assistance, while their agent can earn a $1,500 bonus.
In addition to discounted prices and finance incentives, buyers can take advantage of special financing options offered through Home Path Mortgage. Incentives include a low down payment requirement of 3-percent, flexible mortgage terms, reduced closing costs, and the exclusion of property appraisal fees and mortgage insurance.
Many of Fannie Mae's bank owned foreclosure homes require substantial repairs. While most mortgage lenders require buyers to obtain high-interest construction loans, buyers who purchase Fannie Mae properties in need of extensive renovation can apply for low-interest Homepath renovation mortgage financing to obtain additional funds for construction needs. This finance option can save buyers hundreds of dollars in interest.
Home Path mortgages are not financed directly through Fannie Mae. Instead, borrowers apply for financing through approved HomePath lenders. A state-by-state list is provided at HomePath.com and includes popular home mortgage providers such as Flagstar Bank, PrimeLending, Platinum Home Mortgage, and Fidelity Bank Mortgage.
Fannie Mae works closely with government agencies that offer public funds for housing needs including the Department of Housing and Urban Development and Public Housing Authority. Investors who buy homes for use as Section 8 may qualify for special financing programs and down payment assistance.
Additionally, many of the Fannie Mae Homepath properties may qualify for HUDs Neighborhood Stabilization Program grants which offer funds to buyers that purchase real estate in neighborhoods with excessive foreclosure rates.
Individual buyers and real estate investors can search available Fannie Mae homes at HomePath.com. The website provides all the tools buyers need to locate properties for sale and approved mortgage lenders, along with links to HUD and PHA programs.
Before heading over to the Home Path Mortgage website, we invite you to browse our home buying and real estate investing article library to learn more about the process of buying foreclosure homes, along with obtaining information about the risks and rewards of investing in bank owned real estate.