Fannie Mae Homepath Properties

Fannie Mae Homepath properties consist of nationwide residential foreclosure homes. Many of these properties are priced below current market value because they require some level of repair. The average cost of a two bedroom, one bath Fannie Mae foreclosure is $140,000.

Fannie Mae Homepath properties are rapidly becoming a preferred choice for first time home buyers and real estate investors. In addition to being able to purchase foreclosure homes at reduced prices, buyers can apply for special financing options through Home Path Mortgage.

Homepath properties include single-family residential homes, condominiums, townhomes, and manufactured houses. These properties were acquired through forfeiture, bank repossession, and deed in lieu of foreclosure.

Forfeiture refers to homeowners who abandoned their property without filing appropriate documents to be released from the property deed. Deed in lieu refers to a special option provided by mortgage lenders which allow borrowers to give their house back to the bank.

All foreclosure properties listed for sale via the Homepath website are sold 'as-is' and are not covered under any warranty or guarantee. Buyers must conduct due diligence by obtaining a property inspection and real estate appraisal to ensure the foreclosure is worth the asking price.

Home Path Mortgage is a government-sponsored home financing program. Buyers can apply for financing through select lenders. Qualified buyers are entitled to special incentives and low down payment requirements.

At present, buyers using Home Path Mortgage to purchase Fannie Mae properties only need to provide a minimal 3-percent down payment. To sweeten the deal even further, Home Path allows borrowers the option of obtaining down payment assistance from outside sources.

Down payments can be funded through borrowers' personal savings, or as a gift, grant, or loan from state or local government, employer, or non-profit organization.

Most mortgage financiers require borrowers to provide down payments between 10- and 20-percent. The only other home loan providers which allow down payment assistance are FHA and VA loans.

Special incentives offered through Home Path Mortgage periodically change. At present, benefits include no appraisal fees or mortgage insurance.

Home Path Mortgage offers two lending options. The first is HomePath Mortgage Financing offered to owner-occupants and investors purchasing Fannie Mae homes that do not require repair work.

The second is HomePath Renovation Mortgage Financing which provides funding for both the purchase price and required renovations. Properties that require renovation loans are identified with a renovation mortgage logo at the HomePath website.

Some of the mortgage lenders include: Fidelity Bank Mortgage, Flagstar Bank, PrimeLending, and Platinum Home Mortgage.

Fannie Mae Homepath loan financing program details and a list of state-by-state lenders is provided at HomePath.com.

Neighborhood Stabilization Grants are offered through the Department of Housing and Urban Development. This program was developed to provide government grant money to buyers of distressed properties in communities with above average foreclosure rates.

NSP grants are available to owner-occupants and real estate investors purchasing qualified properties. Distribution of NSP grants is overseen by each individual state. Buyers must apply for NSP grants through local offices.

Details of the Neighborhood Stabilization Grant program and a state-by-state list of providers are offered at HudNSPHelp.info.

Buying Fannie Mae foreclosure real estate is not without risk. Few of these homes are in perfect condition. Most will need interior or exterior paint, new flooring, updated appliances, and general maintenance. But, with a little TLC, these homes can make perfect residences or investment properties.

Buyers must be financially prepared to remit monthly mortgage installments, homeowner's association dues, and the ability to properly maintain the property. The primary reason for the housing crisis stems from lenders providing loans to people who could not afford to buy a house.

Although it can be exciting to achieve the American Dream of homeownership, if mortgage payments are too restrictive, you will quickly become another foreclosure statistic.

Take time to carefully review personal finances to ensure you have sufficient cushion if unexpected problems arise. Houses can be very costly to maintain. If you don't have adequate income to cover major repairs such as new roofing, window replacement, or replacing heating and AC units, you might not be ready to buy a house just yet.

If you are prepared to accept the challenge of homeownership, Fannie Mae homes can be a great place to begin your home buying journey. The Homepath website offers all the tools you need to locate homes for sale in your area; research local HomePath Mortgage lenders; review frequently asked questions; and utilize loan tools to determine how much you can afford to borrow.

Speculation surrounding the real estate market is property values are finally leveling out. It is believed we have reached the bottom of plummeting prices. If you have been thinking about buying a home, now could be the perfect time.

Before you take the plunge, make certain finances are in good shape and take time to conduct thorough research before investing in foreclosure real estate. Weigh the pros and cons and calculate the true cost of buying. If certain this is the direction you want to go, Fannie Mae Homepath properties may be the perfect home buying solution.