Thursday, November 8, 2012

Purchasing a Home Owned by Fannie Mae (HomePath)

Fannie Mae has properties for sale because they were the investor when the home went into foreclosure. When this happens the goal is to sell these homes as soon as possible. The homes are sold by local real estate professionals selected by Fannie Mae. All the homes are listed on www.homepath.com. It is not necessary to work with the seller agent (Fannie Mae) but it probably makes sense to work with an agent who is familiar with the foreclosure process.

Before you get started looking for a home you will need to get pre-approved for financing. Having this letter demonstrates that you’re a serious and qualified buyer. Keep in mind that a loan pre-approval letter doesn’t mean your loan is approved. You will have to apply for a loan once you have an accepted offer on the house. For a list of HomePath approved lenders go to www.homepath.com and click on the “Financing” tab at the top of the page.

The HomePath Mortgage Financing Features:
• Low down payment and flexible mortgage terms (fixed-rate, adjustable rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupants and investors
• Down payment (at least 3%) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No appraisal required
• No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance.)

The HomePath Renovation Mortgage Financing Features:
• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate, adjustable rate, or interest-only)
• Down payment (at least 3%) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance (Ask your lender for cost details on loans without mortgage insurance.)

Sometimes getting financing for a condominium can be difficult, particularly if the condominium project doesn’t meet the standard guidelines set by Fannie Mae. If the condominium is Fannie Mae owned and eligible for HomePath financing, you may still be able to get financing. Check with your HomePath lender.

Some HomePath lenders work in partnership with mortgage brokers to better serve local communities. Don’t be surprised if your working with someone on HomePath financing but you don’t see their name on the www.homepath.com lender list.

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