Why HomePath Will Not Save You From Foreclosure

The HomePath® mortgage program is for foreclosed homes, but it's not for homes on the brink of foreclosure. If you're looking for help to avoid foreclosure click here. If you're a home buyer (or thinking about buying a home someday) then HomePath is one of the mortgage loan options you may want to learn about. It's a good way to find a lower-priced house and buy it with a low down payment.

It doesn't matter if it's your first home or you're an old pro a this - home buying can be exciting, scary, overwhelming and amazing. The key of course is to make sure it’s the right home for you. Is it affordable? Is it in the right neighborhood? Can you turn the shell of this house into your home full of your style?

One way to finance a house is through HomePath. This mortgage loan option covers the sale of Fannie Mae-owned homes and properties. While Fannie Mae (one of the largest backers of mortgages in the US) works with its partners to help homeowners avoid foreclosure, sometimes foreclosure is unavoidable. Fannie Mae does not want to own a bunch of empty houses across the country. Instead its goal is to sell these properties in a timely manner in order to minimize the impact on the neighborhood.

Fannie Mae uses local real estate professionals to prepare, maintain and list our properties for sale. All of its properties are listed on Fannie Mae’s HomePath website. Most have photographs, property descriptions and other details like school and neighborhood information.

You can work with any real estate sales professional you choose to submit an offer on Fannie Mae properties. However, Fannie Mae only accepts offers through its real estate listing agents. Also, it’s a good idea to pick an agent who has some experience with foreclosure sales.

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 non-profits, 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.

Be smart, do your research! 

Log on and look around. You can search the Internet to research neighborhoods, types of homes, price, schools, shopping, and other information to help find home that best meets your needs.

A great place to start is Fannie Mae’s 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. Once you’ve found a home you like, find a HomePath agent on the contact list to make an appointment to visit Fannie Mae properties.

HomePath Mortgage financing features:

• Low down payment and flexible mortgage terms
• Available to both owner occupants and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No appraisal required
• No mortgage insurance (Ask a mortgage consultant for cost details on loans without mortgage insurance.)

Take Note: Sometimes getting financing for a condominium can be difficult, particularly if the condominium project doesn’t meet the standard guidelines set by Fannie Mae. If the condominium is Fannie Mae-owned and eligible for HomePath financing, you may still be able to get financing – we can give you more information on this situation. The same goes for a manufactured home.

Factors to be considered when buying a foreclosed home include:

• How long has the home been on the market and what’s the current condition?
• What is the current market like?
• When rates are lower, more buyers are apt to make an offer and, possibly, submit higher bids.
• Multiple offers can influence the price, often pushing it higher. Therefore, be prepared to make your highest and best offer the first time.
• Does the home you want have features you believe may be in strong demand?

Fannie Mae won’t accept any offers until a property has been listed for at least three business days. If you are planning on living in the house, you’re in luck. Fannie Mae only considers offers from owner occupants or public entities for the first 15 days a property is listed.

Learn more about your home buying options with "The Only Mortgage Loan Options Guide You Need." The free guide, at the button below, breaks down options for today's housing market from HomePath to USDA Rural Development and everything in between. Whether it's a conventional mortgage or a low down payment option, this guide covers it.