We have all heard dreaded stories about foreclosure homes. When buying a home buyers sometimes try to avoid foreclosure homes because of many different reasons. However, a foreclosure home owned by Fannie Mae shines through the darkness that engulfs all foreclosure homes. Fannie Mae Homepath properties provide low down payments and special financing. Most of these properties are usually repossessed through foreclosure and are returned by borrowers due to terms enclosed in the foreclosure deed.
A Fannie Mae Homepath property is ideal for first time buyers. You can usually get a mortgage either from a lender of your choice or you can also utilize a Homepath mortgage. This mortgage allows you to pay a very small down payment and also provides you with special financing options. Fannie Mae also provides assistance with closing costs. Using the Homepath mortgage options you are also given the added advantage of saving considerable amount of money. This is possible because you save money on mortgage insurance and you do not have to worry about any real estate appraisals. Homepath mortgages are also provided by local lenders however a lender needs to be approved to provide Homepath loans. You can find a list of Homepath lenders online.
Usually lenders do not allow you to take any outside assistance for down payments when you utilize the traditional home loan. A Fannie Mae mortgage, however, allows buyers to obtain the assistance you require for down payment. You can ask friends, family, employers and even charitable organizations. There are two types of mortgage loans that are provided by Fannie Mae: one is the conventional loan (Homepath Mortgage) and the other provides extra cash that can be used for light renovations (Homepath Renovation Mortgage).
All properties listed under Fannie Mae listing come with details of the type of loan for which the property can qualify. Properties that require renovations are marked with a special logo designed for Fannie Mae Homepath properties. Unlike a traditional loan with high interest rates that add up to thousands of dollars, a Fannie Mae renovation loan allows you to use the loan without high interest rates.
It is not a surprise that some foreclosure properties require repairs. Therefore, buyers should ask home inspectors to inspect the property and get an appraisal to find the actual value of the property. All Fannie Mae homes are sold in the ‘as in’ condition. It is therefore important that you ask for repair cost estimates if any additional issues are discovered during inspection.
Negotiations for all Fannie Mae properties are reserved for situations where major repairs are discovered. Many real estate agents have access to Fannie Mae property listing and therefore, there are many buyers who are sometimes interested in a single property. The buyer with the highest price is generally considered. When in a multiple offer situation, make sure to place your best offer upfront if you really want the property.
Many people who buy Fannie Mae properties are first time buyers or real estate investors or people who are looking for a second vacation home. First time buyers are given preference over investors for all Fannie Mae properties for the first few weeks of a property lisiting. So, if you are looking for a home it is a good idea that you have a look at the mortgage plan and listings that are offered by Fannie Mae Homepath.
You can find a list of Fannie Mae Homepath properties online. The Homepath site allows allows you to establish a profile in order to aid in your search for a foreclosure property. Establishing a profile will allow you to receive email alerts of new homes, price reductions and other offers from Fannie Mae.