The home buying experience can be an overwhelming experience that can be exhilarating, fun, stressful and exhausting. The process of securing a mortgage, successfully bidding on a home and completing the transaction can be lengthy, complex and involve seemingly endless professionals. Those professionals may include a buyer’s agent, a loan officer, a home inspector, title […]
What Are HomePath Loans?
Between a down payment, closing costs, and other additional expenses you may encounter, finding the funds to become a homeowner may seem near impossible. Luckily, there are solutions for homebuyers that are facing financial challenges.
HomePath Simplifies Homebuying
Fannie Mae offers HomePath loans that allow buyers to purchase homes with simpler mortgage requirements and financial assistance on foreclosed homes. When a foreclosure occurs where Fannie Mae is the investor/owner that the mortgage company is working with, they will try to sell the home to minimize the impact on the neighborhood.
Since these properties need to be off the market as soon as possible, they are generally priced lower. This option can be great for first time buyers and real estate investors
Types of Financing
For HomePath loans, there are several financing options available to you to help you get a mortgage for your home:
HomeReady Mortgage is a financing option for HomePath loans that’s similar to a traditional mortgage. With this type of mortgage loan, you can qualify even if your credit is less than perfect. In addition, only a five percent down payment is required with a mortgage that can be made on flexible terms. The five percent down payment can come from your own savings, but it can also be funded as a gift, a grant, or a loan from elsewhere. All of this can be done without the implication of mortgage insurance.
HomePath Ready Buyer Program
Fannie Mae also offers the HomePath Ready Buyer program, which is great for first time homeowners because in order to qualify, you must take a homeowner’s education course. While it will teach you to be a responsible homeowner, you can also request up to three percent closing cost assistance toward your purchase once the course is completed.
Getting a HomePath Loan
Before putting in an offer, it helps to get a lender’s prequalification and while it doesn’t guarantee that you’ll get a loan, it does help. Getting prequalified helps the process go smoother so you can get the financing you need for your potential home. Should Fannie Mae get another offer, you may be asked to submit your best offer, and Fannie Mae will do whatever best suits them. They are not required to accept any offer submitted. HomePath loans offer flexible solutions for those that need assistance. With the help of a real estate agent and a partnering mortgage lender, you can find the HomePath property that suits you.