HomePath Loans

HomePath Loans Austin, TexasAustin HomePath Mortgage

 

What is a Fannie Mae HomePath mortgage?

 

With a HomePath Mortgage, borrowers are able to purchase a Fannie Mae-owned property. There are several benefits associated with a Fannie Mae HomePath mortgage, including:

  • Qualified borrowers are able to purchase property with a low down payment and flexible mortgage terms
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  • The borrower can use a personal savings or a gift, grant, or loan from a nonprofit organization, state or local government, or employer to finance the down payment (at least 3%)
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  • No lender-requested appraisal is needed
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  • No mortgage insurance is needed; ask our Austin mortgage team today for more information regarding cost details on loans without mortgage insurance
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  • Accepts expanded seller contributions for closing costs
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  • Mortgages available for more than just primary residences- also, available for second homes and investment properties
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  • Waives several condo project requirements; ask our Austin mortgage team for more details

If you would like to receive more information regarding Fannie Mae HomePath mortgages, contact us today.

 

Why is Fannie Mae selling properties?

 

While Fannie Mae works diligently to help homeowners prevent and avoid foreclosure, sometimes they are inevitable. When foreclosures occur on properties in which Fannie Mae is the investor, Fannie Mae will attempt to sell the properties as quickly as possible in order to reduce the effects the foreclosure has on the community.

 

What types of properties are available through the Fannie Mae HomePath database?

 

The Fannie Mae HomePath database only includes properties owned by Fannie Mae. The database offers an extensive variety of homes located in several different Austin neighborhoods and surrounding areas. They provide home types for all tastes, including single-family homes, condominiums, and town houses. Because of the consistently updated database, the number, types, and sales prices of the homes offered by Fannie Mae may vary. While the majority of the homes are relatively new, older homes can be found in some areas. Also, some homes may require repairs.

 

What are the differences between buying a home owned or managed by Fannie Mae and any other home purchases?

 

The main difference is that when you usually purchase a home, you deal with a seller who is either currently living in the home or has recently moved out, while Fannie Mae has acquired the property through a foreclosure.

 

Does Fannie Mae fix everything in the house?

 

Although they may make some repairs to properties, the buyer should be aware that every property is sold “as is.” The buyer should be aware that Fannie Mae is not responsible for fixing any issues after settlement, and just because the house has cosmetic updates does not guarantee that everything not seen is properly working.
 
It may be in the buyer’s best interest to hire a qualified professional to inspect the property. Also, Fannie Mae does not warrant any work that may have been done to the property prior to it being sold; therefore, a buyer may wish to purchase a home warranty if one is available.

 

Will I be informed of issues with the property?

 

If Fannie Mae knows of any hazards on the properties, the information is disclosed to the real estate listing agents. However, not all issues may have been reported. Once again, hiring a professional property inspector in highly encouraged.

 

What type of sales contract does Fannie Mae use?

 

Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum. Buyers should carefully look over the document. If anything appears to be confusing or makes the buyer uncomfortable, they should consider contacting a real estate attorney, the real estate sales professional who listed the property, or any real estate professional to go through the documents with them.

 

Do I have to use Fannie Mae’s selected title, settlement, or escrow companies?

 

The buyer does not have to use Fannie Mae’s selected title, settlement, or escrow companies. They may select the companies of their choice, subject to the terms of the contract.

 

Will Fannie Mae accept an offer contingent on the sale of my house?

 

Fannie Mae will not accept offers contingent on the sale of the buyer’s current home. However, other types of contingencies are occasionally considered on a case-by-case basis.

 

Why does Fannie Mae request a lender’s prequalification statement before negotiating a home purchase offer?

A prequalification statement or letter is technically not required by Fannie Mae before negotiating an offer. However, if the buyer does acquire this statement, they better position themselves to receive financing and are able to complete the sales transaction earlier.
 
The prequalification also helps the buyer understand what they can afford to spend on a home and focus on that price range while home shopping. The buyer is also able to see the mortgage amount that they may qualify for before making an offer.
 
It is important to make a note that a loan prequalification does not mean that the loan has been approved. The buyer must apply separately for the loan after the prequalification and offer is accepted.

 

Can I buy a home directly from Fannie Mae?

 

Because Fannie Mae depends on the expertise of local real estate sales professionals, they only accept offers through their real estate listing agents. However, the buyer is permitted to work with any real estate sales professional to submit an offer to the real estate agent who has listed the home or property.

 

What happens if Fannie Mae gets more than one offer?

 

If Fannie Mae receives multiple offers, they may ask that all interested parties submit their best offer by a specified date and time. Fannie Mae can choose to accept, provide a counteroffer, or decline any offer that is submitted.