HomePath financing is a program from Fannie Mae to help qualified buyers get into a home at a good price. The mortgage investor is selling the housing stock left over from the massive foreclosure flood from the last couple of years. Benefits to a HomePath mortgage include low down payment, expanded seller concession and discounted prices. It's almost like buying a house at an auction (but not really).
What you need to know about HomePath financing
Find out how much house you can afford with mortgage pre-approval. This is a key step in the home buying process. Having a pre-approval shows a real estate agent that you're a serious borrower, and lets you know how much house you afford with your current budget.
You may be eligible for buyer assistance. Fannie Mae suggests working with a housing counselor. You can also look for financial help that’s available for home buyers. Buying a home can require upfront cash – often more than people expect. Federal, state, and local governments, and many local and national nonprofits, provide assistance to individuals and families looking to purchase a home (especially first time home buyers). Fannie Mae supports this and encourages home buyers to seek financial help if necessary. A qualified housing counselor is a great resource – he or she will be well versed in the kinds of programs available in your area. To find a qualified housing counselor, check out the HUD website.
Research Fannie Mae-owned homes. You can see Fannie Mae-owned homes in your area (or the area where you want to live) on the HomePath website. It lists, in detail, all of Fannie Mae’s properties located in neighborhoods across the country. You can even create a personalized search which lets you be among the first to know when a new property is coming on the market in your area. Click on ―Advanced Search‖ and you’ll find a host of ways to search for information.
The differences between HomePath and HomePath Renovation. HomePath Renovation has the same benefits as a HomePath Mortgage, with the added benefit of rolling repairs into the mortgage. Projects typically covered by a HomePath Renovation mortgage include a new roof, building a deck, and painting (interior or exterior). You can learn more about HomePath Renovation here: "5 Home Improvement Projects for a HomePath Renovation Mortgage."
Incomplete, multiple and counter offers - what to do. An incomplete offer will not usually be submitted to Fannie Mae for review. So make sure you and the real estate agent you're working with understand what's required in the documents. The documents are binding, so carefully review all of them with your agent before submitting them. In multiple-offer situations, all parties (this means you) will be asked to submit their "best and highest" offer no later than a specified date and time. Fannie Mae may accept or reject an offer or provide a counter offer.
An accepted offer - Once a contract has been executed by both the buyer and Fannie Mae, a 10-day inspection period is provided. During this time, the buyer can perform inspections and decide whether the property meets their needs.
You can learn more about HomePath financing and Fannie Mae-owned homes in the free eBook "The AmeriFirst Buyer's Guide to HomePath" at the button below. The 8-page guide takes you through the process, explaining each step in plain English for you.
(gavel pic: Flickr user Vectorportal)