I wasn't aware of the Fannie Mae HomePath© program until a friend mentioned it to me over the weekend. It could open up more alternatives for your buyers.
This special program is available on certain Fannie Fae homes specified with the following logo:
I checked the website for two cities and there were 60+ properties available in Oklahoma City and 700+ in Fort Lauderdale. The Fannie Mae website allows you to look at the listings in your particular locale.
The nice thing about the program is that investors are also welcome with a low down payment. However, there is a process they call
under which only owner occupants get a 15 day head start from the time the home is listed before investors are allowed to make an offer.
Basicially the HomePath program is somewhat similar to FHA programs and has the following benefits:
- Low down payment and flexible mortgage terms
- A buyer may qualify even if credit is less than perfect
- Down payment (at least 3%) can be funded by personal savings; a gift; a grant; or a loan from a non-profit organization, state or local government, or employer
- No mortgage insurance
- No appraisal fees
- Loans available from a variety of lenders - both local and national.
- There is also a special mortgage available for light renovation on owner occupied homes only.
There is also a special program going on right now until December 31, 2010. Fannie Mae is offering buyers 3.5% in closing cost assistance and a $1,500 bonus for selling agents on HomePath properties. The following qualifications must be met to be eligible for the incentive:
- The HomePath property sale must close on or before December, 2010
- Only owner occupants purchasing a HomePath property as their primary residence will receive up to 3.5% in closing cost assistance
- Only selling agents representing owner occupants purchasing a HomePath property as their primary residence will receive a $1,500 bonus. To be eligible for the agent's bonus, the initial offer must close on or before December 31, 2010. No bonus will be given for investor purchases.
- Buyer and selling agents must request incentive upon submission of initial offer in order to be eligible
It may be too late to take advantage of this year end incentive but perhaps in 2011 they will bring back something similar.
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