The first place to get information is at www.HomePath.com HomePath is the venue that Fannie Mae (FNMA) uses to sell homes that have been foreclosed upon and FNMA has repurchased. FNMA opened up a direct link to Realtors and consumers thru HomePath.com. FNMA is the largest purchaser of mortgages in the Country.
At www.HomePath.com buyers and Realtors can search their areas for all of the properties that are available from FNMA and are available with HomePath financing.
HomePath is also a mortgage program designed by FNMA. FNMA has experience in this area as they set the guidelines and rules that lenders follow that want to sell loans to FNMA. Most conventional fixed rate loans end up with FNMA or Freddie Mac (FHLMC) which is the other government sponsored Mortgage Bank.
HomePath lending guidelines are quite flexible for primary residence and investment property purchases. YES, HomePath can be used by investors. Today, I'm talking about primary residence guidelines. Here are a few of the basic guides:
1. 3% down payment for owner-occupied
2. No Appraisal is required, however, some lenders may enforce their own appraisal guideline
3. No PMI. Big savings there for the buyer and obviously, easier to qualify with lower payments
4. Standard ratios for front and back end debt loads
5. Currently, FNMA and HomePath Financing is offering a 3.5% Seller Concession on all HomePath properties. WOW, without even negotiating. FNMA offered this last fall and found success with a Seller Concession in place.
Note to listing agents. FNMA understands what buyers are looking for and it's help with closing costs. Many sellers would be helping their own efforts by offering a 3% concession on their home to help buyers with their financing. If a home is attractive in appeal, offering a Seller Concession up front only makes the home more attractive, from the financial viewpoint. And it gives the Listing Agent more marketing opportunities.
HomePath is typically a more attractive option than FHA for two reasons. First, you may not need an appraisal (although some buyers may want one anyway. In my eyes, I'm not worried about the value if my Realtor does their homework for me.) A home inspection becomes much more valuable than an appraisal does. Second, there is no PMI/MIP with HomePath which FHA does have and that offers the buyer a lower payment and more attractive financing.
HomePath is a good tool for these properties and also a good marketing/sales lesson can be learned from FNMA at the same time.
Ken Pederson
Certified Mortgage Planning Specialist, CMPS
FAIRWAY Independent Mortgage Corp
Lancaster, PA. NMLS 134943
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