Fannie Mae Partners With HomePath Properties to Provide More Avenues for Home Ownership

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With the ever-increasing number of distressed homeowners and consequently distressed homes on the market for sale, Fannie Mae is doing what it can to relieve the market of some of those properties.  Recently foreclosed properties are now being offered together in partnership with HomePath Properties with the special incentives provided to HomePath buyers – in an effort to free up some of the inventory that bogs the market down these days.  In this article, we share some of the incentives available through HomePath and a few reasons why this is a fantastic program that you don’t want to miss out on if you’re in the market for a new home.

Know the Expression “Pennies on the Dollar”?

That’s right -- foreclosed homes owned by Fannie Mae are sitting there waiting to be grabbed by a savvy buyer who knows the incentives out there right now to buy through this avenue – and they are being sold for pennies on the dollar.  Now, we’re not being unrealistic here nor are we exaggerating – but the truth is that for about 50 cents on the dollar on average, you can be the owner of a new home.

Lower Closing Costs – Plus Seller-Paid Appraisals

HomePath financing allows lower closing costs of just 3%, which adds up significantly and can make an impact on the move-in expenses for many people – especially in light of our current economy.  To add icing on the cake, if you close on your home before October 31, 2011 – HomePath Property homebuyers are receiving 3.5% back toward all closing costs.  That means you will have a half percent bonus in your pocket – just like that.  And the beauty of this arrangement is that your monthly payments will also be reduced.

What’s more, appraisals are not required to be paid by the buyer.  As if it wasn’t already the best time to be on the buying side of the fence – now, you can count on even more money in your pocket.

Monthly Mortgage Insurance – “WAIVED” Goodbye

One of the hardest things to endure is the private mortgage insurance payment that gets rolled into the monthly mortgage payment of most “under 20% down” home purchases.  The Fannie Mae properties that are being sold via HomePath have the unique feature of having NO PMI payments tacked on each month.  The savings are incredible – as much as $200 per month on an average property.

Renovation Loans Available for Some HomePath Homes

There has been a lot of buzz about the 203K loan lately, especially with higher inventory levels and less demand.  The homes that are on the market are not always necessarily the ones that buyers are interested in.  With the 203K home renovation loan, buyers can roll the cost of changes they want to make to the house right into their mortgage.

There are a few guidelines to keep in mind with the 203K loan; the cost of repairs/renovations must be at $5,000, investment properties are eligible but they require a 20% down payment and the dwelling type is limited to single-family homes.  Further, not all HomePath Properties are eligible for the renovation loan but it is fairly easy to find out by visiting the website www.homepath.com and checking to see if the property is tagged by Fannie Mae as eligible for renovation loans. The only other guideline is that all work must be completed by a qualified General Contractor and an inspection will be done pre and post renovations.
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Keep in mind that the home being purchased must be used as your primary residence in order to qualify.  Also, properties that are financed through the Fannie Mae HomePath properties incentive – have to be processed by a Realtor.  The good news is that there are lots of Realtors out there.  The bad news is that you will need to spend some time looking for one who knows what they are doing with HomePath property financing. So, in your home buying endeavors, if you find a HomePath house you like, go for it!  With all these great incentives, it’s definitely going to be worth it.