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Buy Fannie Mae Foreclosure Homes with HomePath?

Fannie Mae HomePath Foreclosure HomeI’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!

Check homes for sale here

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!

 

562-999-1355

Scott Schang

Branch Manager at Broadview Mortgage Long Beach, California, I am passionate about educating and empowering consumers. Feel free to call, text or email me at (562) 999-1355 or ScottS@broadviewmortgage.com

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4 comments
James
James

Hi Scott, You've informed me in a separate article of yours that because I keep on paying for my fha loan even after my bk was discharged that the countdown cant start from bk but instead from the time when and if I foreclosed or short sale my house. I have been reading a lot of your articles since I discovered it the other day and I just learned about Homepath option by reading another article today. Now my question is since my current loan is FHA and its no longer showing on my credit report, if I apply for homepath loan, are they going to see that I still have a mortgage that I am paying on? Would they also see in maybe public records if I foreclosed or short sale? Lastly, how long after bk or foreclosure would some usually wait in order to qualify for Homepath? Thank you so much, I really appreciate all the info I'm learning from you, James

James
James

Hi Scott, You've informed me in a separate article of yours that because I keep on paying for my fha loan even after my bk was discharged that the countdown cant start from bk but instead from the time when and if I foreclosed or short sale my house. I have been reading a lot of your articles since I discovered it the other day and I just learned about Homepath option by reading another article today. Now my question is since my current loan is FHA and its no longer showing on my credit report, if I apply for homepath loan, are they going to see that I still have a mortgage that I am paying on? Would they also see in maybe public records if I foreclosed or short sale? Lastly, how long after bk or foreclosure would some usually wait in order to qualify for Homepath? Thank you so much, I really appreciate all the info I'm learning from you, James

Yvette Robinson
Yvette Robinson

HOPEFULLY, YOU CAN HELP ME BY ANSWRING A QUESTION. We are buying a Fannie Mae Homepath property. Our financing has been approved for quite some time. We dis not know till last week there is a title recording issue. Chase is the mortgage holder. We keep getting a message that the paperwork to be recorded has some errors that are being addressed in order to close next week. Are we crazy to expect this thing to actually close? The property is a beach condo in Mississippi. Thanks

Scott Schang
Scott Schang

Hi Yvette, No, you're not crazy to expect this thing to actually close. It's not uncommon at all for there to be "last minute" scrambling and resigning when coming up on the deadline to close. Make sure you communicating with both your lender and agent and keep asking questions until you fully understand what is happening.

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