Fannie Mae works closely with mortgage loan companies and other stakeholders in the real estate and finance industries to help home owners who have Fannie Mae loans to avoid a foreclosure. However, there are some situations where a foreclosure is unavoidable. When a foreclosure does occur, the goal of Fannie Mae is to sell the property as quickly as possible to another owner.
Fannie Mae wants to ensure that the property sits vacant for as little time as possible. Vacant homes in communities affect the property values of other home owners. And this is where the Fannie Mae HomePath loan program comes into play.
All properties that are backed by Fannie Mae are listed on the HomePath.com website. Each listing includes photographs and a full description of the property. HomePath loans allows each visitor to select property parameters, such as price or number of bedrooms to find the best property for their needs.
The HomePath.com website features many types of homes in all types of neighborhoods across the US. There are single family homes, townhouses and condominiums. Many of these properties are in good condition and are in move in now condition.
Fannie Mae Looking for New Homeowners
Fannie Mae likes to sell their HomePath properties only to buyers who plan to live in the home. It generally does not want to sell the properties to investors who are going to either rent or sell the property. When the home is first listed, Fannie Mae accepts bids from only owner occupants for 15 days. This allows these houses to be bid upon without prices being driven up by investors. The countdown that is remaining is displayed on the property listing on the website.
These homes are very competitively priced. That is why if you are looking for a first-time home buyer program, you may want to consider the Fannie Mae HomePath program. It also is a good option for those who are looking for an affordable, larger home, and retirees who want to down size on a limited budget. Also, Fannie Mae has a number of special financing programs. Some of them include a down payment as low as 3% or 5%, and very affordable interest rates. Other incentives also include a special HomePath mortgage program for properties that are move in ready. There also is a HomePath Renovation Mortgage for homes that need a moderate amount of rehab.
More Details About HomePath Program
This program also provides you with the opportunity to earn as much as 3% in closing cost help toward the purchase of one of these homes. Remember, all of the properties in the HomePath program are foreclosures that are owned by Fannie Mae.
Fannie Mae claims that you can save up to $4,500 on closing costs on a home that is worth $150,000. The closing cost help is a way to assist first time home buyers with facing the many financial consequences of owning their own home.
To be eligible for this program, buyers need to first buy and finish a home ownership education class; this costs $75. Fannie Mae will reimburse you for the cost of the class at closing.
More benefits of the HomePath program will appeal to a broad cross section of home buyers:
- There is no home appraisal required, which can save you up to $500
- You can have average to poor credit; under 660 is even possible
- Buyers can have up to 6% in seller concessions to offset closing costs
There’s more. Down payments on these homes can come from a family member. Or, the down payment can be made via a loan or grant from government or a nonprofit organization.
To qualify for the Fannie Mae HomePath program, you will need to have your income verified by your Fannie Mae-approved lender. You will need to have copies of your W-2s, tax returns, bank statements, and credit scores. If you have a regular job, you need to have your paystubs, and the self-employed need to have a profit and loss statement and tax returns available.
About the Fannie Mae Home Buyer Education Course
The home buyer course is called Framework. It is a self-directed class that exceeds the minimum standards that have been established by the Department of Housing and Urban Development, as well as the National Industry Standards for Homeownership Education and Counseling.
This program was first set up after the mortgage crash, first coming online in 2013. According to Fannie Mae, if people are properly educated about owning a home, communities and families will be better off. The education course covers the following topics:
- How to determine how much home you can afford
- How to determine which house to buy
- How to select the best mortgage loan
- What your offer should include
- What is the closing process like
The education course is available in both English and Spanish. It takes up to six hours to complete. It is available entirely online and also can be viewed on mobile devices.
The program is offered on smart phones because millennials are comfortable with Internet technology on all types of mobile devices.
As of the end of 2015, 12,000 consumers had completed this education program since it was started in 2015. Of that number, several thousand have put offers on homes and eventually closed.
The HomePath home and loan program by Fannie Mae provides you with a great opportunity to get a home at a very reasonable cost. Many people can qualify for one of these mortgages, as well. Be sure to talk to your lender about the Fannie Mae HomePath program today.
References: HomePath Mortgage by Fannie Mae. https://www.homepath.com/homebuyers.html (2016, Jan. 23). Retrieved from https://themortgagereports.com/14815/home-path-mortgage-fannie-mae-mortgage-rates