Homepath - What Makes it a Great Deal?

When you are in the market for a home and find a Fannie Mae foreclosure that is in the HomePath program, why aren't you better off using other mortgage programs to buy the home?  The answer is simple - Fees and Payment!

HomePath homes are properties that are owned by Fannie Mae and have been foreclosed which means Fannie is incurring costs of carrying the home each month that goes buy.  To encourage a buyer to purchase the home that is on their books, Fannie provides the following benefits to the buyer -

• No appraisal is needed - why would they need one? It's a property already on their books that is not being paid for.  Also, they have already had an estimated value to set the list price done.
• No Mortgage Insurance is needed - Huge savings to keep your monthly payment lower.
• More flexibility with credit score qualifying.
• Expanded seller contributions are available to keep the cost to acquire lower.

By selecting a mortgage product such as FHA to purchase a HomePath home, you will pay the hefty mortgage insurance premiums.  Currently, FHA MI is 1.75% upfront at closing and 1.25% for the annual renewal.  Even though the FHA interest rate is lower than the HomePath financing option, the cost to close and the monthly payments are much less.

If you'd like more info on the HomePath program, click here.

To see what HomePath homes are avilable in your area - HomePath homes.
HomePath guidelines and price adjustment matrix - https://documents.efanniemae.com/sf/ns/hpreo/pdf/mortmatrix.pdf