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Fannie Mae Homepath Properties Offers Affordable Housing For Everyone

by Guest on Feb 7, 2012 Buying 314 Views

Fannie Mae Homepath properties include residential homes which have been repossessed by mortgage lenders through foreclosure or deed in lieu of foreclosure. Although most of the homes require repair, they are priced below market value and many qualify for government grants to offset repair costs.

Fannie Mae Homepath properties make an excellent choice for real estate investors and first time home buyers. They can also be a good choice for those looking for a second home.

Buyers of Fannie Mae foreclosures can apply for financing through Home Path Mortgage. This government sponsored program offers buyers incentives, along with reduced down payment requirements. Home Path Mortgage can be a good choice for buyers with low- or medium-risk credit scores.

What sets Home Path aside from other mortgage financiers is buyers who purchase homes in need of moderate repair can apply for renovation loans that include additional funds for repairs. Most lenders require mortgagors to take out construction loans and refinance mortgages after repairs are complete. This can add a large sum to the overall cost of the property.

Perhaps the most appealing aspect of financing properties through Home Path Mortgage is the low down payment requirement of 3-1/2 percent. The majority of banks require a minimum 20-percent down payment which often prohibits those who want to buy a house from obtaining financing.

Better yet, buyers are allowed to obtain down payment funds from outside sources. These can include cash gifts or personal loans from family, friends, employers, or charitable organizations.

Special financing options are offered on a limited-time basis, so buyers should view the 'Specials' section of the Fannie Mae Homepath website. Currently, buyer incentives include not having to pay for real estate appraisals or mortgage insurance.

All properties listed for sale through the Home Path website are offered in 'as-is' condition and are not covered under warranty. Therefore, buyers must perform due diligence prior to submitting a purchase offer.

Fannie Mae properties can be ideal for real estate investors. Foreclosure homes can make great rental homes, Section 8 properties, and to offer seller-financing options such as rent-to-own.

In recent months, many investors have begun investing in distressed real estate for use as rental property with purchase options. As the number of foreclosures rises, a new market has opened to provide opportunities to buyers who want to own a home, but cannot qualify for financing due to having lost their property to foreclosure.

Providing 'owner will carry' financing can be beneficial to both sellers and buyers. Sellers can procure long-term tenants who take care of the property because they are working toward buying it. Buyers are given the opportunity to buy a house while embarking on credit repair strategies.

Another consideration of Fannie Mae Homepath properties is applying for grants offered through HUDs Neighborhood Stabilization Program. NSP grants are available to individuals and investors who purchase homes located in areas with high foreclosure rates. Program details are offered at HudNSPHelp.info.

Those considering buying a home as their primary residence or for investment purposes should consider looking at Fannie Mae homes first. Combining NSP grants with Homepath Mortgage can make Fannie Mae Homepath Properties one of the most affordable choices.

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