Fannie Mae’s HomePath program is a useful tool for homebuyers seeking an affordable, comfortable home. Designed to help Fannie Mae deal with an unexpected result of the housing crisis, this program continues to assist homebuyers all across the country.
HomePath may be a good option for you, so you owe it to yourself and your family to learn about this program…
Understanding Fannie Mae HomePath
What is Fannie Mae’e HomePath?
Before the housing bubble crashed and the financial recession began, Fannie Mae was essentially responsible for one task: encouraging mortgage availability for as many Americans as possible. The goal was to help potential homebuyers fulfill the American dream, but when the recession occurred, the market plummeted, jobs were lost, and many homeowners were unable to pay their bills, including their mortgage payments. Fannie Mae, which had guaranteed many of the loans across the country, was suddenly forced to take possession of thousands of homes where owners could not repay the loan. Seemingly overnight, Fannie Mae became one of the largest property holders in the entire country.
But holding property was not Fannie Mae’s purpose; it had no experience working directly with homebuyers, but it suddenly had tens of thousands of properties in its possession. It had to do something.
To address the situation, Fannie Mae officials created the HomePath program, which helps sell foreclosure properties to willing buyers. The HomePath program is more than a listing website; it’s actually a network of contractors, real estate agents, and other property professionals who not only help sell the home, but maintain the house and perform upgrades if needed.
While the main goal of the HomePath program is to unload the properties, they are not selling houses at rock-bottom prices. (You can certainly find a great purchase, but they’re not selling homes for pennies on the dollar.)
If Fannie Mae is forced to foreclose on a property, which they make the highest efforts to avoid, it cleans the home, adds visual improvements to enhance sales, and updates landscaping to increase the curb appeal.
Once the home is ready for the market, a real estate agent who works with HomePath will list the unit. Fannie Mae is still dedicated to the dream of personal homeownership, so for the first 20 days that the home is on the market, they only take offers from owner-occupants and certain nonprofits. If, however, the property does not sell after the first 20 days, they open the home for flippers and investors.
Why Choose a HomePath Property?
A HomePath property gives individual homebuyers the chance to actually purchase a foreclosure home. Unfortunately for owner-occupants, flippers and investors often scoop up foreclosed homes before average buyers get a chance at the property. In some cases, they may not even know the house was ever available before it’s bought by a flipper.
Fannie Mae also provides assistance with closing costs, making the purchase more affordable for investors. This can equal thousands of dollars, but home buyers who use this advantage will usually need to complete some form of homeownership training or education.
Fannie Mae’s HomePath is also extremely transparent, making buyers more confident in their decisions. All offers are accepted online, so Fannie Mae can see those offers and select the ones that are best.
How to Qualify for Fannie Mae HomePath Property
Eligibility for the Fannie Mae program is important, but there’s really not much that should hold you back. The program is intended to be as available as possible, so the requirements are minimal, at least compared to other government housing programs. If you are going to take advantage of the closing-costs benefit, however, there are a few steps you’ll need to take.
One of the most important steps for the HomePath program is home-ownership education. This education provides a foundational knowledge of the basics of mortgage payments and home ownership. It will help you determine the type of house you can afford, the right home for your needs, how to find the right lender, and explain what will happen if you get to a closing agreement. In most cases, the online education can be completed in a single day.
Types of Loans Available in HomePath
If you choose the HomePath program, you will have many financing options available, including fixed-rate and adjustable-rate mortgages. While both have advantages, it’s best to talk with a lender before deciding on one or the other.
Is the HomePath Program Right for You?
When you are searching for a home, it can be difficult to determine what programs are right for you and which ones are better for someone else. After all, there are numerous government-sponsored homeownership programs, so navigating them all can seem tough. What about HomePath? Is this the right choice for you and your family?
In most cases, HomePath is for new homebuyers who will live in the home for an extended period. (Although there are conditions that affect owner-occupancy, there appear to be none that impact time lived in the home.) If you are a new home buyer who plans to live in the home you purchase, you may be a good candidate for this program.
There are also some benefits that may help with your purchase. For example, many of the homes can be bought with a low down payment, as little as 3% of the home’s value. Also, you may be able to avoid mortgage insurance if you purchase a HomePath property.
While the properties are usually attractive to first-time homebuyers, many retirees who are seeking a change in home may find good deals with HomePath. (Size is not a qualification for HomePath houses, but they are often moderate-sized single-family homes, which are good for both retirees and first-time buyers.)
Reliable Advice on All Mortgage Programs
There are many programs available, so be sure to talk with a qualified expert before making any decisions.
With expert advice and a dedication to commonsense underwriting, we can help you get approved for an affordable mortgage that fits your needs and budget. Contact our team today to learn more about HomePath and other mortgage options!
“Hi Juliann and Chad, I wanted to take a moment and thank you guys for what would have been impossible for us to do without you. We wouldn’t have our keys in hand if it had not been for your help in navigating the financing, and Juliann’s perseverance in getting the rest of the players in the transaction to deliver. Out of everything, our interaction with your office has been a highlight – and your customer service has been beyond everything we’ve experienced in the real estate industry. Is there a way we can provide any reviews, ratings, testimonials, or other statements that can express to your potential future customers how much you guys do to make the customer’s life easy? Please let us know how we can share our great experience with you to the rest of the public. Whether we refinance this under a VA, or get in a bigger/better house in a few years, we’re not going to go anywhere else for financing. We are customers of yours as long as you are in business. Thanks again for getting us in a house!”
Incredible Turnaround and Stellar Customer Service. Chad and his team helped us get into our first home here in San Diego. When we first started the process we were skeptical it would even be worth applying. But Chad and his team walked us through the whole lending process with integrity and know how that surpassed our expectations. After helping us to pull together our pre-qualification, he and his team stayed at the ready. Before we even walked up to a home we were seriously interested in he had the data we needed over to us and our realtor. After finding the home we wanted to place a bid on, we were able to place a bid with a matter of a few hours. Then, after having our offer accepted, he had our loan package completed and the keys in our hands in under a month — I am pretty sure it was less than. Like I said, incredibly fast and professional turnaround. if you are looking for a motivated lender who can walk you though every detail and have your back every step of the way, Chad and his team at HomePoint Financial is your best decision. Recommend them highly!”
Chad Baker and his team are amazing!
My husband and I found Chad through an article he had written. Every aspect of working with Chad and his team was exceptional. From our initial phone call where he explained the many options we had, to advice he gave in dealing with somewhat challenging sellers, and closing our loan ahead of schedule, the loan process with Chad and his team went very smoothly. I especially appreciated the one-on one guidance from Juliann, who really made me feel like I was her only client. I look forward to working with Chad and his team again and would highly recommend them to anyone looking for a mortgage.