El Dorado, Sacramento and Placer County Real Estate

REO Bank Properties

Fannie Mae Foreclosures offer a great opportunity

Use Fannie Mae HomePath Financing to purchase a Foreclosure

Home Buyers and investors that haven’t discovered Fannie Mae HomePath properties and financing are missing out on a great opportunity.  Fannie Mae markets its foreclosed property under the HomePath brand and even has special HomePath Financing to help complete the sale.  Fannie Mae lists area foreclosures with local Realtors. HomePath Financing is available through selected banks and your locally approved mortgage broker.

This area has more than its share of foreclosures.  A buyer looking for a Fannie Mae foreclosure with an excellent financing option would be well served to begin their search with a HomePath property and special HomePath Financing.

Realtors signed up with Fannie Mae HomePath to list these properties in their local market are a great source for opportunities. Buyers can search for a foreclosure on-line at www.HomePath.com and find some very well priced homes with low down payment financing options.  Also, first time home buyers in California purchasing a Fannie Mae-owned home may be eligible for up to $10,000 in tax credit from the State of California.

Special HomePath Financing includes several benefits:

  • Fixed or adjustable rate mortgage programs available.
  • Available to owner occupants and investors.
  • Credit scores as low as 660.
  • Low down payment options down to 3% for owner occupants and 10% for investors.
  • Gift funds acceptable for down payment
  • No mortgage insurance required.
  • No appraisal required.
  • Up to 6% seller concessions allowed.

In addition to special HomePath Financing, Fannie Mae offers a HomePath Renovation Loan for some of its foreclosures.  The HomePath Renovation Loan allows buyers to purchase foreclosures and incorporate some repairs or upgrades into the mortgage financing.  The ability to build-in improvements into the mortgage without a large out-of-pocket expense makes the Fannie Mae HomePath Renovation Loan an excellent choice for buyers on a budget.

BANK OWNED PROPERTY, CONT.

HomePath Renovation Loan benefits and restrictions:

  • Financing to fund both purchase and light renovation.
  • Low down payment options down to 3%.
  • Gift funds acceptable for down payment.
  • No mortgage insurance
  • Available for owner-occupied properties only
  • Appraisal required to validate repairs or upgrades
  • Renovations up to the lesser of $30,000 or 20% of the completed home value.
  • HomePath properties must have “Renovation Mortgage” logo on listing to qualify.

HomePath properties and financing programs offer a unique opportunity for buyers and investors to purchase a home with as little as 3% down. Most of these properties are instant cash flow for investors and close faster then traditional mortgages. First time home buyers, why pay mortgage insurance because you don’t want to put 20% down on a home? FHA just increased their Mortgage insurance premium to 2.50%. This is a cost paid upfront when taking out an FHA loan without putting 20% down. With Homepath Financing there is no mortgage insurance.  Buyers can find an exceptional value and opportunity to purchase foreclosures with the ability to upgrade their homes on a tight budget.

I specialize in the sale of these homes. You can visit www.homepath.com for a full list of inventory, and discover how a Fannie Mae HomePath property and HomePath mortgage can help you.