I haven't really dealt much with them. One of my agents is putting in an offer.

Any caveats with them on the process? The buyer is approved for 70k and the property is listed at 80k.

First, make sure the house qualifies for HomePath Financing, because sometimes they only qualify for HomePath Renovation Financing (this one is for fixer uppers). Second, HomePath Financing is usually through a mortgage broker, it is more difficult to find a broker that does HomePath Renovation Financing. Third, Do not rely on the HomePath website for a list of mortgage companies, as they pretty much only list national companies. I found my list because when the mortgage broker's found out I was listing Fannie Mae's, they sent me emails. We called each one and questioned them and got a feel for them to see how knowledgeable they were. We only provide information on 2-3 mortgage brokers.

Here is what I provide to agents on my Fannie Mae listings that qualify for HomePath Financing.

The benefits include:
• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance*
• No appraisal fees
• Also eligible for HomePath Renovation Mortgage (see details below)
• HomePath Mortgage financing is available from a variety of lenders

AND, Here is HomePath Renovation financing:

Available only on homes you make your primary residence and offers these benefits:
• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance*
• HomePath Renovation Mortgage financing is available from several lenders

Thanks!

Thanks Justine - that's very useful

I have also heard that less you put down 3%, 4% etc, the HIGHER the rate is and sometimes it just isn't worth it and it is better to go FHA.

An REO agent in my area told me that Fannie Mae marks up their HomePath properties by quite a bit, since you don't need an appraisal for it. She also told me they don't discount much on offers (something like 5% max).

Jeff, it that was the case, they would never get them sold. Every FNMA I've handled has been eligible for HomePath and several for HomePath rehab.

The toughest part is finding someone who will do the rehab loans, since most of the loan officers I've discussed this with kind of blank stare (or long silence)

Thank you PARoadKill


All of my Fannie Mae's have sold and most long before a price reduction and for at or very close to asking price.

I sorta get all puckered up at the thought of selling a client a home without an appraisal. Sorta reminds me of one of my first deals when I sold a home for a client to a non profit that paid cash about 250,000 above appraised value lol. After that experience everyone gets an appraisal I represent as a buyer.I sleep better at night that way!

Can I derail the question and add another one? Who out there has gone through the approval process to get approved as a listing broker? I just submitted my app and was wondering what to expect? My app is fairly clean and I do have multiple REO listing clients but not sure how Homepath works.

Anyone got any thoughts for me?

REOOH - Actually, the appraisal is already done when using the HomePath financing. Fannie Mae has appraisals done prior to listing the properties, hence why they can offer the "no appraisal" option on HomePath financing.

The property does get an appraisal. Before it gets listed.

HomePath prices WTF?
I found one that's $22 over the sold $/square foot....multiply that by 1800 square feet and you'll see what I mean.

If anyone needs it Prospect Mortgage is doing Homepath loans.