Category Archive: Homepath

What the HomePath Program Means to You

We’ve all heard about the surge in foreclosed homes that was one of the results of the financial crisis in 2008. Some of those homes became the property of banks and other lending institutions that held the mortgages. Many others, though, became the property of Fannie Mae, one of the government entities that buys loans after they are originated.

HomePath is a program that Fannie Mae set up in 2009 that allows buyers to purchase Fannie Mae-owned properties. The agency has set up a website, www.homepath.com, where buyers can find more information and can search for homes owned by Fannie Mae that are available for sale. These foreclosed properties can be great opportunities for Florida first-time home buyer, homeowners looking for a bigger home, people shopping for second homes, and investors.

How does it work?

The process for buying a HomePath property is similar to buying any other property. You’ll need to work with a real estate professional, since Fannie Mae only accepts offers through its network of real estate listing agents. However, there are some differences.

Remember, you are dealing with properties that have been acquired through foreclosure or forfeiture. Fannie Mae may choose to make some repairs, but many of these properties are in an “as-is” condition, and Fannie Mae will not make any repairs after settlement. As a buyer, you should thoroughly understand the condition of the property, and the cost of any repairs you may need to make. If Fannie Mae is aware of a hazard, they must disclose it to any buyers. However, as you might well imagine, with thousands of homes, Fannie Mae may not be aware of any problems. As usual, it’s a good idea to have any property thoroughly inspected by a home inspection professional.

Financing options

Homes purchased through the HomePath program can be financed like all other homes, using these available options:

  • FHA Loans: With this loan, it requires only a 3.5% minimum down payment, and all the funds needed to close can be in the form of a gift from a family member. An FHA home loan is also attractive because sellers can contribute up to 6% towards the buyer’s closing costs and prepaids, property tax and homeowner’s insurance escrows.
  • Fannie Mae: This program is available to qualified borrowers who haven’t owned a home in the last three years and can only be used to by a single-unit primary residence. Homeowners can refinance up to 97 percent of the value of their homes and can use up to $2,000 of their home’s equity to pay closing costs.
  • VA: The FL VA home loan is available with no down payment, up to $417,000 with full entitlement, has no monthly private mortgage insurance, and Sellers can contribute up to 4% towards the buyer’s closing costs and prepaids.
  • FHA 203K: Worried about the costs associated with fixing that HomePath home? The FHA 203K is a great option as it combines your mortgage and a construction loan into a single home loan. This allows you to save money on closing costs and makes the home renovation process a little less stressful.

Learn More

To find out more about HomePath properties that are available in Florida, contact us at 407-733-6425, or browse our website for more information. Embrace Home Loans has the expertise and the resources to help you negotiate the process for a HomePath home, whether you are a Florida first-time home buyer or want a second home.

The path to your next home may be the Homepath program

Fannie Mae’s Homepath program is not limited to just first time home buyers. Seasoned investors looking to pick up a very low priced FL investment property can take advantage, as well as FL vacation home or 2nd home buyers. The Homepath mortgage loan may just pave the way on the path towards your next FL home mortgage.

Consider the following benefits with the Homepath program:

  • Finance your next FL home without having to worry about or even pay for an appraisal. With the HomePath mortgage, appraisals are not required!
  • Down payments can be as low as 3% for owner occupied homes and as little as 10% for vacation, 2nd homes or investment properties.
  • Enjoy lower monthly payments, as there is no PMI (private mortgage insurance) requirement.
  • Enjoy spending less (save more money), as sellers can contribute up to 6% towards buyer closing costs for primary and second homes; or up to 2% for investment properties
  • No prepayment penalties and choose from 30 year or 15 year fixed rate loans as well as 3/1 or 5/1 ARM programs.

To learn more about your path to qualify for a Fannie Mae Homepath mortgage; call 407.733.6425 or email Stephen Thaggard.

Stephen Thaggard, NMLS 356309,  Sr Loan Officer, licensed in Florida,

Embrace Home Loans, NMLS 2184,  485 N Keller Road, Suite 550, Maitland, FL 32751