Homepath-Dudhu Syandhal Ikiyuu

HomePath for Investors-Dudhu Syandhal Ikiyuu

Imagine buying an investment property with very little down, with a great interest rate and no mortgage insurance. Well it is possible!

If you are an investor and would like to have a chance to buy properties with little down, or you would like to be able to finance the repairs, then you are in luck. Fannie Mae HomePath will allow it. Let's look at the program more in depth.

1. As little as 10% down

In today's market, you would need to put at least 20% down to purchase an investment property. There just aren't any lenders willing to lend with less money down. The main reason is because mortgage insurance companies aren't willing to accept the risk.

Well that was the case, but now there is the HomePath Mortgage! With this program you only have to put 10% down. This will open up your chances of leveraging more properties with your investment.

2. No mortgage insurance

You probably already know this, but let's cover it, just in case. Mortgage insurance is a premium paid to the lender because you did not put enough money down. This is not homeowner's or fire insurance.

Most loans will require that you put 20% down or you have to pay mortgage insurance. Not with Fannie Mae HomePath. You can put as little as 10% down and you don't have any mortgage insurance to pay. This can save you as much as $140 a month, on a $150,000 purchase.

3. Finance the repairs

Unlike 99.9% of the loans out there, the HomePath Renovation Mortgage allows you to finance repairs into the loan. There is a ceiling on how much money you can get towards the repairs though.

What's the downside?

It seems like most loans have a downside, so you are probably asking what it is here. There really isn't any. If anything, maybe it's that the interest rate is a bit higher, but it is much cheaper than paying mortgage insurance.

One more note, as an investor you will have to wait 15 days or more before you can make an offer. They want to give people a chance to buy the home that will live in it first. This period is known as the "first look". The only State that requires more days is Nevada, and the first look period there is 30 days.

As you can see, the HomePath options are a fantastic way to buy your investment property. If you want more information on the Fannie Mae HomePath properties, give us a call.

9 Fannie Mae HomePath Facts

There are a few really important facts that need to be known about Fannie Mae HomePath properties. There are great deals to be had, but be prepared to move quickly. These foreclosures tend to get multiple offers very quickly when they hit the market, and you may end up in a bidding war.

Let's go over the top 9 Fannie Mae HomePath facts:

1. Fannie Mae HomePath is available to investors.

This is usually unheard of. But investors can get in on this craze. Most of these style programs are not available to the investors and are reserved for the owner occupied buyer.

2. HomePath does not require mortgage insurance.

Even though you are not putting 20% down on the loan, HomePath financing does not require mortgage insurance (MI). Some people might know this as PMI.

3. No appraisal necessary.

On certain programs, there is no need to have an appraisal. This is great if you are intending to do repairs that you don't want the lender to know about, or if there are repairs that most lenders would require to be fixed, prior to issuing a loan.

4. Interest rates are a little higher.

It is what it is. The interest rates are slightly higher on these programs. It is a small price to pay if you are trying to buy a home outside the normal box.

5. There are (or can be) incentives.

Fannie Mae regularly comes out with incentive programs that are really great. Like offering to pay your closing costs, or giving the agent a bonus for selling the home. Make sure you check into these or ask your Realtor.

6. You can renovate your purchase.

If the home needs repairs, check to see if the home is eligible for the HomePath Renovation loan. You are allowed to finance extra money in to complete the repairs. Again, this is an unusual opportunity, since most loans do not allow for financing above and beyond the purchase price.

7. Homes are sold as-is.

Since banks and lenders never lived in the home, they sell them as-is. This means that if there are issues with the home, they are your problem once you buy it. It is always recommended to get a home inspection to ensure you know more about what you are buying.

8. HomePath is for Fannie Mae properties only.

Financing is for homes owned by Fannie Mae only. You cannot use HomePath to purchase a home owned by Freddie Mac or any other lender.

9. Fannie Mae does not lend directly.

If you want to get a HomePath loan, you need to locate a lender that offers them. Fannie Mae will not lend you money directly, rather, they will approve a loan that a lender or bank underwrites. Since the lender and loan officer does most or all of the paperwork, you will never "see" Fannie Mae in the process.

A Fannie Mae HomePath property and loan can be a great opportunity to buy a home that is affordable and offers low down payments with no mortgage insurance. If you are in the market for a new home, then make sure you consider them in your search.

Bank Homes Foreclosures and Home Path Mortgages

Bank homes foreclosures is a highly viable way of owning property. It is very attractive to buyers due to the feeling of security created by dealing with banks. Banks have always had the reputation of being on the level or above board and all one needs is a good credit standing to qualify for loans.

Sometimes people are reluctant to secure a loan to purchase bank homes foreclosures, probably because they feel their income or stature will fall short of the qualifications of banks. Perhaps they are not aware that Big Brother can help them out with Home Path mortgages, a program operated by Fannie Mae.

How can Home Path Help You Own Bank Homes Foreclosures?

The HomePath mortgage program was established to provide incentives for both banks and borrowers to induce sales of bank homes foreclosures. The real beauty of acquiring a foreclosure through a Home Path mortgage apart from the significantly lower price is the fact that Home Path will only require borrowers to put up three percent of the total down payment with great flexibility on amortization.

Homepath support bank homes foreclosures that include town houses, apartments and condos as well as single family homes. Your research is still an essential component to the whole buying process as these bank owned Fannie Mae foreclosures are all sold in their present condition or as is. These homes will require some measure of repair or improvement so it is best to do a careful selection process. Depending on the home type, its general condition and its location, Fannie Mae can undertake minor repairs on some of these homes. For significant repairs, Home Path offers another line of credit, which falls under renovation or home improvement. This means setting up a mortgage in excess of the value of the home to free up some funds for the repairs.

To apply for a Home Path mortgage buyers must be pre-qualified by a bank. While not all pre-qualified borrowers are assured of financing, they at least have an idea of the amount of money they can loan. Another plus for Home Path mortgages is that it accepts down payment funding from outside resources such as a gift from your family, your boss, a charitable or non-profit organization. Borrowers can also avail of down payment assistance from the government via the Neighborhood Stabilization Program or theHUD. Will all these government incentives and tax.

How Does HomePath Financing Affect Communities?

Foreclosure. Pre-foreclosure. Shadow foreclosure. Short sale. Bank owned homes. That's a list of some pretty scary words right there. It seems like every day we see a news story on television or in the newspaper on how bad the housing market is right now. Now, you can look at the large number of stories as "doom and gloom" hype to gain ratings. Or you could look at it as a good barometer on how the market is in the U.S. Either way, the fact remains: these foreclosed homes affect the neighborhoods. Foreclosed homes make many neighborhoods look abandoned, which leads to serious problems.

The Numbers

Here are some numbers: In some markets, short sale and bank owned homes make up about 30% of the for-sale listings. That's a low-to-average number. Other markets are seeing 40-50 percent. When this is going on, property values drop. Some experts say that for every foreclosure in a community, home values drop by 1-2 percent. So when multiple homes go through this in an area, it can devastate the surrounding neighborhood.

Why it Matters to Communities

Unoccupied homes unoccupied are often ripe for vandals. Abandoned homes become a canvas for graffiti artists. The grass gets out of control, the landscaping deteriorates and the house generally looks bad. This blight can lead to more crime in surrounding areas and put homes with families living in them at risk. Turning these empty houses into lived-in homes once again is vital to keeping American communities thriving. One major holder of properties across the country is Fannie Mae. So the mortgage giant came up with a system of marketing, listing and financing these homes called the HomePath® mortgage. This option allows the buyer to buy a Fannie Mae-owned house with a low down payment (3%), no mortgage insurance (ask your mortgage consultant about cost details on loans without mortgage insurance) and other incentives. The bottom line for everyone is this: selling the properties in a timely manner is critical to minimize the impact on the community.

First Look and Investors

This is an opportunity for lenders and real estate agents to work together on community restoration by turning these foreclosed, empty properties into occupied homes in thriving neighborhoods. In fact, after the general public gets a shot at the home, the listing is open to investors. Here's a look at what Fannie Mae calls its "First Look" period. The First Look period is typically the first 15 days a property is listed on the HomePath website. The properties include a countdown clock on the details page, which displays the number of days remaining for negotiation with eligible purchasers. During this time, buyers who will live in the home as a primary residence, some non profits, and public entities and their partners can submit offers and purchase properties without competing with investor offers. After the First Look period expires, investor offers are considered along with all other offers.

The HomePath mortgage financing option is great for first time home buyers because so many houses on the market are listed below market value, so it's a great opportunhttp://www.blogger.com/img/blank.gifity to get out of that rental and into a good home at a good price. The HomePath option is a solid plan for first time home buyers with community benefits.

HomePath Mortgage-Dudhu Syandhal Ikiyuu

HomePath is Fannie Mae's exclusive program that allows a home buyer to purchase a Fannie Mae foreclosed home with as little as 3% down. One of the biggest benefits of this program is the ability to only put 3% down as a down payment while still avoiding paying mortgage insurance!

The HomePath program benefits include:

• No appraisal necessary
• No mortgage insurance
• As little as 3% down payment required
• Seller contributions of up to 6% of the purchase price
• Owner occupied, second homes and investment properties allowed

Here's a look at each of these benefits one by one:

Appraisal Waiver

The HomePath program states that an appraisal is not necessary. Since Fannie Mae already owns the property and will also be holding loan that the new buyer will obtain, they are allowed to set their own rules. Avoiding the appraisal means that the buyer does avoid the roughly $400 that an appraiser will charge for their service, however, critics claim that it puts the buyer at a disadvantage since they do not get an independent third party opinion of the value of the home. Of course, the buyer can choose to pay for an appraisal if they so wish, but it is not required.

No Mortgage Insurance

A typical home loan requires mortgage insurance if the buyer is putting less than 20% down. Mortgage insurance insures the lender and not the homeowner. Therefore, avoiding paying the monthly or upfront mortgage insurance premiums associated with most loans with small down payment amounts can offer huge savings to prospective home buyers.

3% Down Payment

The HomePath program has the lowest down payment requirements for an owner occupied property of any conventional loan available in the marketplace today. FHA loans require a minimum of 3.5% down and traditional conforming loans require at least 5%.

Seller Contributions

The HomePath program allows Fannie Mae to offer as much as a 6% concession towards closing costs. This money can be used to pay for all third party fees allowing the home buyer to use their funds solely for their down payment. **Special Bulletin** Fannie Mae is offering 3.5% towards closing costs on ALL HomePath loans closed before June 30, 2011

Second Home and Investment Properties

HomePath is available to those looking to buy a second home, invest in a rental property as well as those buying a primary residence. The down payment requirements may vary depending upon occupancy, but the requirements are less stringent than conventional financing for all occupancy types.

It is important to note that not all lenders can offer a HomePath Mortgage-Dudhu Syandhal Ikiyuu. Be sure to ask for a Certified Up Front Mortgage Broker that is Fannie Mae approved to close HomePath loans.