Have you heard of Fannie Mae HomePath? It is a program that quickens the process of selling foreclosed homes. Fannie Mae works with housing counselors and mortgage companies to ensure that even if a home is foreclosed, they sell it very fast to reduce the impact of defaulting homeowners. With Fannie Mae, buying a home is cheap, fast, and easy.
Normally, HomePath is an online program from which you can buy Fannie Mae-owned houses about to be foreclosed. Fannie Mae usually gets the property through deed-in-lieu (the homeowner gives up ownership of his home voluntarily to the mortgage company). When this home is listed on the HomePath website, you can align with a real estate agent to make an offer and buy the home if the offer is approved.
Due to the fact that these homes need to be sold as fast as possible,
first time home buyers who are willing to spend less on buying a house spend less. They can as well get flexible mortgage terms and down payments. Fannie Mae gives special financing options like HomeReady Mortgage and HomePath Ready Buyer Programs. Even if real estate investors benefit, they cannot enjoy the level of financial incentive homeowners have.
Furthermore, Fannie Mae gives a First Look program for those buying a primary residence. If a house is listed under First Look, they will only accept bids from homeowners within the first 15 days of listing. It is only when you plan on moving in that you can make the First Look bid.
Moreover, you may wonder what a Fannie May HomePath Property is, it is any home owned by Fannie Mae due to foreclosure. It could be a single-family home or a condominium. The price of a home depends on the area it is found. If you want to know available properties, go to the HomePath website.
However, there are some houses you can easily move into, others may need some repairs before you park in. Fannie Mae sells the house as it is while the buyer takes care of the repairs and renovation. To encounter fewer problems, hire a qualified home inspector to inspect the property before buying.
Requirements for purchasing a home from the HomePath Program
- You must submit an offer to a Fannie Mae approved listing agent.
- The offer must be in writing with the date and time.
- There is no room for contingent offers, if you don’t have money ready, don’t apply for a house.
- You don’t need to get a lender’s prequalification statement before submitting your offer. But it may help you get a house quickly.
- Applicants can use a conventional mortgage loan to purchase a home. But your minimum credit score must be 620 at least and a maximum loan to value ratio of 80%. Your debt-income-ratio must be equal to or less than 36% of your monthly gross income. Some ask you for at least a 20% down payment.
Fannie Mae Financing Options
HomeReady Mortgage Program: if you want to buy a single-family home and can meet the income limit in your area, you can use this program. You will make a 3% down payment. Also, you will complete an online homeownership course run by Framework.
HomePath Ready Buyer Program
To qualify for this, you must complete the HomePath Ready Buyer online educational course by the framework. This will help you get up to 3% back in closing costs. You can combine this program and the former to the same purchase.