HomePath is a foreclosure purchase program provided by Fannie Mae, which is among two government-sponsored entities involved in the mortgage markets. The HomePath program makes it easier to have a mortgage loan to purchase a Fannie-owned foreclosed home. Hopeful owner-occupants also are extended a 15-day “First Look” chance to purchase newly recorded Fannie properties. Additionally, Fannie’s HomePath offers special financing through Fannie-approved lenders, and buyers can shut as fast as they can fulfill their lenders’ closing requirements.
HomePath Purchasing
Fannie Mae is not a lender but a purchaser of mortgages originated by lenders that meet its lending guidelines. Approved HomePath lenders usually allow hopeful owner-occupants to put no more than 3 percent down on the properties they are buying. Once Fannie accepts a bank’s pre-qualified or pre-approved purchaser’s foreclosure purchase offer, the home inspection and closing interval begins. Fannie agents attempt to shut HomePath real estate sales as speedily as possible, but they realize that lender requirements can lengthen the procedure.
Funding Assistance
As Fannie notes, certain states and municipalities offer down payment and financing assistance programs. Additionally, the Department of Housing and Urban Development (HUD) provides financing assistance through its Neighborhood Stabilization Program (NSP). The typical closing period for HomePath buyers using NSP and other people funding help is 45 days, according to Fannie Mae. HomePath buyers subsequently can expect to close in their properties everywhere from soon after Fannie’s offer approval around 45 or so days later.
HomePath Advantages
Except for HomePath mortgage renovation programs, Fannie doesn’t require debtors to conduct appraisals on HomePath properties. Low appraisals or appraisals failing safety and safety conditions for FHA-insured mortgages frequently kill earnings. No reviews are needed for Fannie-owned HomePath properties, however purchasers are given a 10-day inspection interval following Fannie’s approval offer. Lastly, a large advantage of this HomePath purchase program is that there aren’t any mortgage insurance mandates, even for buyers putting down just 3 percent.
Borrower Financing
Fannie-approved HomePath lenders may be worried about a debtor’s credit and ability to payfor. Generally, borrowers with credit scores of 660 are eligible for HomePath financing from Fannie’s approved lenders. Because there’s no need for an assessment, inspection, or mortgage insurance, the HomePath closure method is somewhat streamlined. 1 thing to remember is that HomePath financing comes with interest rates that run approximately one-quarter to one-half percent higher than rates on conventional loans.
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