Owning a home is a dream come true for many people. But buying a home can be daunting, especially if you’re not sure where to start. If you’re considering purchasing a HomePath property, you should know a few things first.
What are HomePath properties?
HomePath properties are typically foreclosed homes that are being sold by Fannie Mae. Because Fannie Mae is not in the business of selling homes, they typically sell these properties at a discount. This can be an excellent opportunity for buyers to get a deal on a property. HomePath properties are also available for purchase with unique financing programs from Fannie Mae. These programs can offer buyers significant savings, making HomePath properties an attractive option for those looking to purchase a home.
What are the requirements to acquire a HomePath property?
Acquiring a HomePath property is different than acquiring a traditional home. There are a few different requirements that must be met to qualify:
- Buyers must obtain a HomePath mortgage through an approved lender.
- Buyers must complete a homeownership counseling course. This course helps prepare buyers for homeownership responsibilities and is typically offered by a HUD-approved counseling agency.
- Buyers must make a minimum down payment of 3% of the home’s purchase price.
Once these requirements have been met, buyers can begin searching for and bidding on HomePath properties. Buyers will work with a real estate agent to find homes that fit their budget and needs. Once a home has been chosen, the buyer will submit an offer to Fannie Mae. If the offer is accepted, the buyer will move forward with completing the home purchase.
How the HomePath property program works
When it comes to purchasing a HomePath property, there are a few steps that must be followed.
- Contact a real estate agent
First, buyers will need to find a real estate agent that is experienced in working with HomePath properties. The agent will be able to help the buyer search for homes and navigate the Offer process.
- Get pre-approved for financing
Next, buyers will need to get pre-approved for a mortgage through an approved HomePath lender. This will ensure that buyers can obtain the financing they need to purchase a HomePath property.
- Search for properties
Once buyers have found an experienced real estate agent and have been pre-approved for financing, they can begin their search for HomePath properties. Buyers can search for homes on the HomePath website or through a real estate agent.
- Submit an offer
When a buyer has found a home they would like to purchase, they will submit an offer to Fannie Mae. The offer must be submitted through the real estate agent.
- Complete the purchase
If the offer is accepted, buyers will complete the home purchase. This process is similar to purchasing a traditional home, with a few additional steps that must be followed.
What are the benefits of buying a HomePath property?
Several benefits come with buying a HomePath property.
- Saves you money
HomePath properties are typically sold at a discount, saving buyers money.
- Special financing programs
Fannie Mae offers special financing programs for HomePath properties that can offer significant savings to buyers.
- Easier to qualify
The requirements to qualify for a HomePath mortgage are often more flexible than those for a traditional mortgage, making it easier for some buyers to qualify.
- A wide selection of homes
Because Fannie Mae owns thousands of properties, a wide selection of homes is available through the HomePath program.
Disadvantages of buying a HomePath property
While there are many benefits to buying a HomePath property, there are also a few disadvantages that buyers should be aware of.
- Repairs may be needed
HomePath properties are sold as-is, which means that any necessary repairs will be the buyer’s responsibility.
- Financing may be more expensive
While some buyers may find it easier to qualify for a HomePath mortgage, the interest rates on these loans are typically higher than those for traditional mortgages.
- The process can take longer
Because Fannie Mae owns HomePath properties, the process of purchasing one can often take longer than purchasing a traditional home.
Is a HomePath property right for you?
Now that you know more about HomePath properties, you can decide if one is right for you. If you’re looking for a home that is discounted and offers special financing, a HomePath property may be a good option. However, if you are not prepared to make repairs or deal with a longer purchasing process, you may want to consider another option.
HomePath properties can be an excellent option for buyers looking for a deal on their next home. However, it is essential to weigh these properties’ pros and cons before deciding. With some research, you can find the perfect home for you and your family.