Here’s a short video I put together with my brother, Adam Shandrow.
In it, he explains why purchasing a Fannie Mae home is different than purchasing any other seller or Bank Owned property.
FNMA HomePath® Mortgage Financing Program
We’ve also listed the main points here, just in case didn’t catch it all in the video.
- Many times the homes are move-in ready.
- You get a 97% Loan to Value Ratio.
- You don’t have to pay for mortgage insurance.
- There is no appraisal required, which expedites the closing of escrow.
- The properties are already in lendable condition.
- Though your interest payments might be higher, your PMI is waived.
- You can save hundreds of dollars a month in fees and mortgage payments.
When buying a Fannie Mae-owned home, you know the condition of the property, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.
Though Fannie Mae does make some repairs to properties to increase its marketability, other repairs may still be needed after you purchase the property. Even if the house has fresh paint, new carpet, new appliances, possibly even a new roof or siding, it doesn’t mean everything in the house is new, or works as it should.
I would suggest hiring an independent home inspection professional if you’re at all concerned about it. Fannie Mae recommends you do this as well.
Some benefits that we didn’t mention in the video:
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- You may qualify even if your credit is less than perfect
- Available to both owner occupiers 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
- HomePath Mortgage financing is available from a variety of lenders – both local and national.
You can check out the full details here: www.homepath.com
If you’re interested in a Fannie Mae property, you must work with a real estate sales firm, such as Shandrow Group, and have us submit an offer on your behalf.
Let us know if you have any questions,
Mark Shandrow
Real Estate Broker
Shandrow Group
Can you qualify for the $6,500 if you use the Home Path program?
If you are referring to the federal tax credit, yes, you can use both Homepath and the tax credit.
There is some very misleading information in this post. In the begining of this post it is stated that Homepath properties are in move in condition and lendable condition.
This is not true based on the homepath.com website… they are as is properties…
Just experienced a home inspection where we could not turn the water on because the circuit breaker to the pump and well kept tripping. No water and could not test it.
Listing agent says it is as is… we must fix if we want it…
I do not call NO Water move in condition…