Foreclosure-Houston.com - HomePath Program

Fannie Mae is the largest buyer of mortgages in the world. Some of the homes are foreclosed and there is a special program to help consumers purchase these properties. This is called the HomePath program.

HomePath is available for both owner occupiers and investors. When buying a foreclosure property there can be problems getting financing. If the home is in need of any maintenance or repairs, that may be noted on the appraisal. Then the lender will usually ask for the maintenance to be completed before closing. The seller is typically offering the property “as is” in exchange for a low price, and they may not be willing to make repairs. This can result in a declined loan application. The HomePath program avoids that problem by not requiring an appraisal.

Features and benefits include:

  • You may qualify with less than perfect credit. Generally a 620 credit score is needed with 20% down, or 660 for 3% down.
  • Low down payment financing. As low as 3% down for owner occupied or 15% down for investors. You may also need funds for closing costs. However it may be possible to negotiate for the seller to pay part or all of those costs. (Contact a participating lender for more information)
  • No mortgage insurance. This helps to keep the monthly payments low.
  • No appraisal fees. (And avoids possible problems related to an appraisal
  • A renovation feature allows financing of light renovations.
  • "First Look Program" Fannie Mae only considers offers from owner occupants the first 15 days.

If you are looking at foreclosed homes this is a highly recommended program to consider, especially if you want to finance your purchase. Other features, terms, and conditions apply so please consult with a Texas HomePath lender for details. You can view the properties that are currently available from the link on our home page. You can also get listing information from local Realtors.
 

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