I’m not going to go into a long drawn out explanation of what Fannie Mae is…but let’s just say that they had a lot to do with the current housing mess that we’re in right now.
This is bad for home owners, good for home buyers.
Now, Fannie Mae has a bunch of foreclosure homes that they own and they’re blowing them out with financing options that you can’t get anywhere else!
Fannie Mae HomePath Loan in a Nutshell
- 3% Down Payment
- No MORTGAGE INSURANCE
- Down Payment may come from gift, grant or approved down payment assistance (like CHDAP)
- Must buy Fannie Mae foreclosure home
- Several loan options available – Fixed and ARM
- No appraisal required by lender
- No condo certification required by lender
Even though this program is limited to foreclosure homes owned by Fannie Mae, when I checked today there were over 11,000 available!
You can search for homes for sale by County, City, Zip code (up to 50 at a time!) and MLS number. You can also search by price, bedrooms and bathrooms.
One of the great features of the HomePath program is that you can set up alerts and receive notices when new homes are available to be purchased that meet your specific search criteria.
When you click on the homes for sale link above, look on the lower left corner to set up your alerts.
I have a love/hate relationship with this program.
I mean, I love the low or no down payment option and I love the no mortgage insurance option.
However, I find myself with conflicting opinions about this loan program because it creates more risk for the home buyer in some cases.
Just because the HomePath loan doesn’t require an appraisal or condo certification doesn’t mean you should not still do your homework.
The challenge will not come with buying these homes, but may pop up if you ever try to refinance or sell the home – if it doesn’t meet traditional guidelines.
That said, do your homework, work with a lender that you can trust (like us!), and take extra care to understand all of the risks of using this program.
I will elaborate on the concerns and benefits of this program in future posts, in the meantime, feel free to comment or ask questions below!