How does HomePath program work?

Asked by: Prof. Ines Sanford IV  |  Last update: February 9, 2022
Score: 4.7/5 (15 votes)

Major real estate investor Fannie Mae's HomePath Ready Buyer™ program allows potential homeowners to buy a foreclosed property with as little as 3% down with up to 3% closing cost assistance. If you want to buy a home but can't afford a standard-market property, choosing a HomePath home might be right for you.

How do you qualify for HomePath?

How do you qualify for a Fannie Mae HomePath loan?
  1. Low-income borrower.
  2. First-time buyer or repeat buyer who hasn't owned a home in the past three years.
  3. Limited cash for a down payment.
  4. A credit score of at least 620 (with the best pricing for credit scores above 680)
  5. A maximum debt-to-income ratio (DTI) of 36%

How do I buy a Fannie Mae HomePath property?

If you decide to purchase a Fannie Mae HomePath property, you'll have to go through the following steps.
  1. Find a Real Estate Agent. The first step is to find an experienced agent you trust. ...
  2. Get Preapproved. ...
  3. Browse HomePath Properties. ...
  4. Complete the Buyer Education Course. ...
  5. Submit an Offer.

Does HomePath accept lower offers?

HomePath Property Price Negotiation

Typically, you'll only be able to get a property for a lower price if there's something wrong with it. ... If there are multiple offers, you may find that a buyer offering a higher amount than the asking price gets the deal.

How long does it take to close on a Fannie Mae HomePath property?

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.

What is a Fannie Mae Homepath Property? Melissa @ Cobblestone Realty Chicago

44 related questions found

Who qualifies for a Fannie Mae HomePath property?

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.

What credit score is needed for Fannie Mae HomePath?

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.

Does HomePath pay closing costs?

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.

Can you buy a HomePath property with cash?

yes. You will still need proof of funds showing you have the cash to purchase the property.

What is the minimum credit score for a HomePath mortgage?

There are minimum credit scores required for all HomePath mortgages, with 620 as the minimum score for purchases with more than 20 percent down and 660 for purchases with less than 20 percent down. The borrower must also be “foreclosure free” for the previous seven years. These standards may vary by lender.

Is homepath still available?

Homepath loans required no private mortgage insurance (PMI). Today, Fannie Mae still operates a Homepath website, on which it lists foreclosed properties for sale. Editor's Note: The HomePath program was discontinued in October 2014.

Can anyone buy a Fannie Mae property?

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.

Can you negotiate a Fannie Mae home?

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.

Can I buy a Fannie Mae HomePath property with an FHA loan?

Fannie Mae offers a few financing options to help those who want to purchase a home, but may not be able to do so through a conventional mortgage. ... You can choose the financing option that suits your needs, including FHA, VA and USDA loans, if they make more sense.

Is Freddie Mac a Fannie Mae?

Though both enterprises are better known by their nicknames, Fannie Mae and Freddie Mac have more official titles: Fannie Mae is the Federal National Mortgage Association (FNMA) and Freddie Mac is the Federal Home Loan Mortgage Corporation (FMCC).

What does it mean when Fannie Mae owns a house?

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.

Can you finance a Fannie Mae HomePath property?

We provide Fannie Mae HomePath mortgage financing throughout California. The HomePath loan program has been most effective in providing affordable financing to homebuyers in counties that were impacted most by foreclosures.

How do you buy a Fannie Mae foreclosure?

From Search to Purchase
  1. Prepare for a mortgage credit evaluation. ...
  2. Get pre-approved to buy a home. ...
  3. Visit the Fannie Mae website to view foreclosed homes for sale. ...
  4. Contact a licensed real estate agent to discuss Fannie Mae properties that you desire.

What is the ready buyer program?

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.

How long does Fannie Mae take to respond to an offer?

Are you wondering how long it takes to get a response on a HomePath® offer? After submitting a bid correctly through the Online Offers system, real estate agents should receive a confirmation from HomePath.com, generally, within 24 hours.

What is a HomePath Renovation mortgage?

HomePath Renovation Mortgage allows a borrower to purchase a property that requires light to moderate renovation. The loan amount includes both the funds for the purchase and for the renovation. The borrower works with the lender and the contractors to determine the renovations.

How much of a down payment do I need for a Fannie Mae loan?

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.

Does Fannie own my loan?

Is Fannie Mae my mortgage servicer? No, Fannie Mae owns your loan, but we do not service mortgage loans. You can find your mortgage servicer listed on the loan purchase letter you received from Fannie Mae, or on the welcome letter/packet you should have received from your mortgage servicer.

Is Fannie Mae better than FHA?

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.

Does Fannie Mae help with closing costs?

Fannie Mae allows three primary sources of closing cost and down payment assistance: Gifts, grants, and Community Seconds®. Help borrowers understand their down payment and closing cost assistance options with this easy-to-understand overview.