Fannie Mae Home Path Friend or Foe...

By
Mortgage and Lending with Peoples Mortgage Company
Does the Fannie Mae Home Path Program that is in place to help sell and finance Fannie Mae's foreclosed properties help our Real Estate market or hurt our Market??? On the sales side we have many very qualified Realtors who have the listings and place them into the MLS system. Most of the time these properties are not help open as there are too many. So marketing is dependant on Fannie Mae in bulk opportunities. I don't believe enough of the home buying public knows what a great opportunity is available here. If more publicity went to the financing side of the program more people would buy a Home Path home and the prices would not have to decrease so fast. So lets look at the positives of the financing side of Home Path. 3% down for owner occupancy...This 3% can be ALL gift! Is there a better deal for first time home buyers out there? Parents are you listening?? Currently Fannie Mae is offereing 3 1/2% towards closing costs for owener occupied transactions. There is an extra incentive for Realtors of $1500. From the contracts I see as a loan originator with an approved Home Path lender not all Realtors know and understand this. Secondly Investors if they don't own more then 4 properties already can buy a Home Path home and put down "only" 10%. In the same vein if you want to try to become a landlord you can put down 10% as long as you have proven liquid reserves. Many parents are helping, thier children who have had a rough time either with foreclosure or short sales, by buying an investment property for thier children to live in. With over 190,000 homes on the market nationally and about 4,000 in Maricopa County I believe Fannie Mae needs to do a better job of educating the public and Real Estate Commuinty on what it really takes to make a Home Path Transaction work!!! For Financing Questions Call me...Randal Kaufman 602 740 6678

Comments (1)

John McCarthy
North Hampton, NH
Realtor - Seacoast NH

Randal,

There is no doubt HomePath is a great product for Fannie Mae properties, but there are many great financing deals available. Low interest rates have not helped this sluggish market as we all hoped. Regaining consumer confidence is the key to stimulating the housing market. Many people are still afraid of losing their jobs and being unable to make the mortgage payments. This turnaround will take some time.

Nov 23, 2010 07:32 AM