Be Sure to Check Out This Great Opportunity
When foreclosures occur on Fannie Mae-owned properties, Fannie Mae hopes to sell those properties quickly so the community isn't impacted too greatly. These properties are known as HomePath properties, and there are some great incentives in purchasing them. Highlights include:
- 97% conventional financing
- 3% down payment required - can be gifted/grant funds
- No appraisal required (sale price = value)
- No PMI. Yes...thats right...No Mortgage Insurance required!
- Closing Costs paid by Fannie Mae
- Investment property 90% with No PMI! Great rental / investment opportunity
A HomePath foreclosure generally goes through a basic renovation process before being listed, to make the home more attractive to buyers. This leaves a HomePath foreclosure in better conditions than many other foreclosures, which can be left in an extremely poor state by evicted tenants or foreclosed upon owners. By contrast, a HomePath property is ensured to be in move-in condition.
Despite all of its benefits, the HomePath program is not known or used by all real estate agents, and it may take proactive behavior by a buyer to follow up on the HomePath program, and to locate a desirable HomePath property. Not all agents may be aware of the sizable concessions that may be available on a HomePath property. Since these concessions need to be requested, this oversight can cost a buyer a not insignificant amount of money.
A HomePath mortgage is not available through all banks, but only through specific banks that have been selected by Fannie Mae. Even so, loan officers are not always familiar with HomePath Mortgage loans, as in some areas they can be quite rare. This again can complicate the process, as your loan officer might not be aware of specific requirements of the HomePath loans. As a consequence, your loan process may be delayed.
The bottom line is that HomePath properties offer flexibility and opportunities to save some money. So, it may be worth your time to take a look at them.
Buying a home is a big decision, but even in today's markets great opportunities are available. If you want to learn more about HomePath opportunities in your area, call or email me anytime. I'm always happy to answer any questions you may have.
About the Author
Shawn Kaplan is an active, 50 state Licensed loan officer with Access National Mortgage. Email Shawn at firstname.lastname@example.org or call 615-426-3182.
Bonus: Click to get a free, no-obligation rate quote. I love to work with my readers!