Fannie Mae offers financing for HomePath properties through its network of approved mortgage lenders. In general, Fannie Mae requires a minimum FICO credit score of 620 to qualify for its mortgage loans, but the qualifying requirements may vary according to down payment amount and individual home buyer circumstances.
Fannie Mae requires that you must not have held any type of homeownership in the last 3 years to qualify as a first-time buyer. You must also plan to use your HomePath home as a primary residence, and you need to move into the property in a timely manner, legally, within 60 days of closing.
The Fannie Mae Homepath loan is a defunct mortgage program which reduced the cost of purchasing a foreclosed property for either personal use, or to “flip” for profit. ... Today, Fannie Mae still operates a Homepath website, on which it lists foreclosed properties for sale.
Buying a Fannie Mae HomePath property
The first step in purchasing a HomePath house is to obtain mortgage pre-approval. Fannie Mae will allow for FHA, VA, USDA, and conventional mortgages. A pre-approval letter from the lender is not required when making an offer.
HomePath “Ready Buyer” Pays Your Closing Costs
The Fannie Mae HomePath program is an excellent way for buyers and real estate investors to find homes for sale at a discount. ... Closing cost assistance is paid by Fannie Mae, and delivered to your closing.
Fannie Mae's HomeReady® and standard loan programs require only a 3% down payment for a single-family home. You can use your own funds or get a gift donation from a family member. To buy a second home or an investment property, you need a down payment of 10% and 20%, respectively. Credit score.
But buyer beware: Buying a Fannie Mae home is different than a traditional private sale. Fannie Mae's homes are available to owner occupants as well as investors. ... After the First Look period expires, anyone, including investors, can submit an offer on that home.
HomePath Property Price Negotiation
In other words, if a property is in serious disrepair, Fannie Mae may be willing to accept a lower price, but you'll have to put money into the home, so it may not be as good a deal as buying a less damaged home at full price.
You can negotiate a Fannie Mae home by making an offer, but as with any home purchase contract, you may lose out to someone who is willing to pay more.
The standard closing period for HomePath buyers using NSP and other public funding assistance is 45 days, according to Fannie Mae. HomePath buyers then can expect to close on their properties anywhere from shortly after Fannie's offer acceptance up to 45 or so days later.
The difference between a FHA and Fannie Mae loans are that the FHA insured loan is a loan by The US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by a approved lender. ... The Fannie Mae loan has a higher credit score requirement at 620 to 640 which is higher than the FHA loan.
The Federal Housing Administration, or FHA, requires a credit score of at least 500 to buy a home with an FHA loan. A minimum of 580 is needed to make the minimum down payment of 3.5%. However, many lenders require a score of 620 to 640 to qualify.
Submit your offer through an agent
Add your agent to your HomePath account to represent you through the transaction. They will submit the offer on your behalf. To get started on the offer process for a HomePath home, click on the “Add your agent to this property” button on the property details page.
A Fannie Mae HomePath property is a house that's being sold directly by Fannie Mae to an investor or a traditional buyer. ... One is if the house has gone through foreclosure and Fannie Mae owned the mortgage on it. As the lienholder, Fannie Mae now owns the home.
The main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you'd pay for comparable, non-foreclosed homes. ... Foreclosed homes are sold in "as-is" condition, and are typically unavailable for a walk-through before purchase.
WASHINGTON, DC – Today, Fannie Mae (FNMA/OTC) announced the HomePath ®Ready Buyer ™ program, qualifying first-time homebuyers to receive up to three percent of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course.
Yes a Fannie Mae property can be purchased with cash. You will need to submit proof of funds with the offer. This can be a bank statement or a letter drafted on bank letterhead and signed by a bank official.
The minimum down payment required for a conventional loan is 3%. And the minimum down payment for an FHA loan is 3.5%. Some special loan programs even allow for 0% down payments. But still, a 20% down payment is considered ideal when purchasing a home.
Prospective homebuyers looking for a fixed-rate mortgage will need a credit score of at least 620. A minimum score of 640 is necessary to qualify for an adjustable-rate mortgage (ARM). ... Trying to get a Fannie Mae loan with bad credit is inherently more difficult, though.
The 3%-down conventional mortgage
The standard 3%-down loan, known as the "Conventional 97," is available to first-time homebuyers, which is defined as at least one borrower hasn't owned a home within the past three years. There are no income restrictions, and pre-purchase homebuyer education is not a requirement.