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By Simon Volkov
Fannie Mae’s Home Path Mortgage program offers mortgage lenders and borrowers cash incentives to buy bank owned foreclosure homes. In addition to offering properties at substantially discounted prices, Home Path only requires a minimal 3-percent down payment along with flexible mortgage terms.
Homes for sale through Home Path Mortgage include single family homes, townhouses, and individual condominium units. Fannie Mae bank owned properties are sold in “as is” condition. Most properties require some level of repair, so buyers should engage in due diligence prior to submitting an offer.
Depending on property condition and location, Fannie Mae occasionally makes minor repairs to improve the home’s marketability. Houses in need of significant repair work may qualify for Home Path’s renovation program which allows borrowers to acquire additional funds for repair through the home mortgage loan.
Home Path Mortgage can be an excellent option for first time home buyers and individuals unable to provide a large down payment. One unique feature of HomePath is borrowers are allowed to use down payment funds provided by outside resources. Down payment assistance money can be obtained as a loan or gift from family, friends, employer, non-profit group or charitable organization.
Buyers of Home Path Mortgage properties can also apply for down payment assistance funds through the Department of Housing and Urban Development Neighborhood Stabilization Program. NSP grants are available to individuals and real estate investors who wish to purchase Fannie Mae bank owned foreclosure homes.
Not all Fannie Mae homes qualify for special financing and down payment assistance programs. Interested buyers can locate qualified properties through the HomePath Mortgage website at HomePath.com.
Buyers can apply for financing through the mortgage lender of their choice. It is best to comparison shop to determine which lender offers the lowest interest rate. An additional 1/4-percent interest can add thousands of dollars over the duration of the home loan.
Prior to submitting an offer on Home Path properties, buyers must obtain bank prequalification. Although prequalification does not guarantee financing, it does let borrowers know how much money they can afford to borrow. Prospective buyers can apply for prequalified lending through the mortgage financier of their choice.
Buyers of HomePath foreclosure properties can obtain up to $8000 tax credit against homes purchased prior to June 30, 2010. First time home buyers can receive an $8000 tax credit, while homeowners can receive a $6500 tax credit if they upgrade to a more expensive home and have resided at their current residence for five or more years.
Additionally, Fannie Mae is offering a 3-1/2-percent incentive to buyers who purchase and close on HomePath properties prior to April 30, 2010. Buyers may receive up to 3.5-percent of the final sale price for closing costs; purchase of Whirlpool appliances, or a combination of settlement costs and appliance purchases. Mortgage lenders may impose restrictions on use of the 3.5-percent incentive, so buyers should consult with their mortgage service provider for guidance.
Individuals interested in buying Fannie Mae foreclosure homes through Home Path Mortgage should take advantage of the federal housing tax credit and cash incentives prior to scheduled deadlines. Learn more about Fannie Mae’s home buying program and locate a list of participating lenders at www.HomePath.com.
About the Author: Learn more about buying Fannie Mae bank owned foreclosure homes and the
Home Path mortgage
program from real estate investor and author, Simon Volkov. Simon offers hundreds of real estate, investing and personal money management articles via his website at
SimonVolkov.com
.
Source:
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