What is Fannie Mae HomePath property | apply now
What is Fannie Mae HomePath Property? This is the question that this article will help us answer. But before we answer the question, this article is not written to only brief you of what Fannie Mae HomePath is.
It goes beyond revealing all you need to know about Fannie Mae HomePath. Just read and enjoy.
Fannie Mae works with mortgage servicers, as well as banks that own your loan & housing counselors. They also work with other partners to help homeowners prevent and avoid foreclosure.
They simply do that through their website at www.KnowYourOptions.com. In simple terms, Fannie Mae offers assistance directly to homeowners so they can understand their options to avoid foreclosure.
Meanwhile, sometimes foreclosure is unavoidable. That means foreclosures can occur on mortgages in which Fannie Mae is the owner/investor. When this occurs, Fannie Mae’s goal is to sell properties on time to minimize the impact on the community or individual.
Now, let’s go into details about how Fannie Mae serves many of its customers.
How Does Fannie Mae HomePath Work?
HomePath is an online program that allows you to purchase Fannie Mae-owned properties that are going to be foreclosed. Fannie Mae will get these properties by a deed-in-lieu. That is to say that the homeowner voluntarily gives up ownership of their home to the mortgage company.
Therefore, a transaction in which the homeowner voluntarily transfers the ownership of the property to the owner of the mortgage in exchange for a release of their mortgage loan and payments. Who then, in turn, sells loans in packages to Fannie Mae, Freddie.
So once a home is listed on the HomePath website, you work with a real estate agent to tour the home and make an offer. The HomePath program will only offer from Fannie Mae approved listing agents. You can also work with a local agent to help you submit an offer to the listing agent.
HomePath – What you Need to Know
Firstly, you should know that Homes acquired by Fannie Mae known as a foreclosure or similar means are referred to as real estate owned (REO). As a result, Fannie Mae requires a minimum FICO credit score of 620 to qualify for its mortgage loans.
Notwithstanding, the qualifying requirements may vary according to the down payment amount and individual home buyer circumstances.
HomePath Home Prices & Payment
Many homes on the HomePath website or through agents are priced competitively. This is because Fannie Mae’s goal is to sell off these properties quickly. Therefore, it simply means that first-time homebuyers and those looking to purchase a bigger home for less will most likely benefit.
Additionally, Fannie Mae also offers incentives like flexible mortgage terms and low down payments for some properties. Still, on it, it offers special financing options, such as the HomeReady® mortgage and HomePath Ready™ Buyer programs.
Real estate investors may be able to benefit. But they may not qualify for the same financial incentives that homeowners qualify for.
Facts About The First Look Program Offered By Fannie Mae
- First Look is typically the first 20 days a property is listed on Fannie Mae REO Homes for Sale.
- Properties in the First Look period have a countdown clock on the property information page of Fannie Mae REO Homes for Sale. So it displays the days remaining to purchase.
- Eligible buyers during First Look are owner-occupants, public entities. Also their partners, and some nonprofits.
- Owner-occupants are those buyers that will occupy the property as their principal residence within 60 days of closing and will maintain their occupancy for at least 1 year.
- Again, owner-occupant purchasers need to sign an Owner Occupant Certification as a rider to the Real Estate Purchase Addendum.
- A buyer purchasing in the name of a trust, purchasing as a vacation/part-time residence, or purchasing so another person or relative can live in the property will typically be considered an investor and not eligible during First Look.
- Investor offers come after the First Look period expires. It comes into consideration with all other offers.
Benefits of Buying a Fannie Mae Home
- HomePath properties give owner-occupiers 20 days to react before letting investors know. Investors often take up foreclosures before the little guys even know they’re available.
- Fannie Mae will pay up to 3% of closing costs. With an average of $5,000, for first-time homebuyers. Also an online homeownership training class. The class explains the fundamentals of buying, owning, and maintaining a home.
- All properties appear on the list, and they accept all offers online at Fannie Mae REO Homes for Sale. This makes the process “transparent”. As they always say, “Fannie Mae can see all offers, and we select those that are the highest and best.”
How to apply for the HomePath Program
Firstly, there are two kinds of HomePath mortgages. The first one is your straight-up mortgage, an everyday mortgage. This requires only 5% down for move-in-ready homes.
The second one is the homeopath Renovation. This provides a mortgage plus additional funds for fixer-uppers. Most investors like this second option even more than minor home improvements can create additional equity.
When purchasing a HomePath property, you must first submit an offer to a Fannie Mae approved listing agent. You have to submit your offer in writing with a specified time and date.
Fannie Mae’s financing options make it easier to purchase a home more than with a conventional mortgage. This means that the HomePath program provides options for financing assistance.
It also provides competitive pricing. Most importantly, this also makes for a speedy closing. This means that you can choose the financing option that suits your needs.
Go ahead and enjoy the HomePath Program.