How does fannie mae homepath financing work

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Table of Contents Expand. Table of Contents. Definition and Examples of a HomePath House. By Anna Baluch. Anna Baluch has written hundreds of articles on personal and student loans, mortgages, debt relief, budgeting, banking, and more.

Learn about our editorial policies. Published March 29, HomePath homes come with a variety of perks, such as lower price points and special financing options. Because the homes are foreclosures, they may need repairs. Article Sources. Since , home buyers have flocked to foreclosed homes as an inexpensive way to purchase property. Even today, foreclosures remain popular among all buyer types including first-time home buyers, move-up buyers, and real estate investors, as well.

To help match foreclosed homes with buyers who want them, then, Fannie Mae offers a special program called HomePath.

HomePath is a brand name and refers to foreclosed homes sold by Fannie Mae directly. The Fannie Mae HomePath program first launched in early as a way to help Fannie Mae sell homes it had reclaimed via foreclosure. The HomePath program lets buyers buy Fannie Mae-owned homes with simpler mortgage requirements than with a traditional loan, at current mortgage rates.

The first program is called the HomePath Mortgage. The Home Path Mortgage resembles a traditional home loan you might find from a bank. The standard HomePath mortgage is meant for buyers who are purchasing the foreclosed property to be their primary residence; and for homes which are generally move-in ready.

The HomePath Renovation Mortgage is aimed at buyers buying a home in need of heavier work or repair; and, real estate investors doing fix-and-flip, for example.

The purchase and renovation loans close simultaneously, which reduces borrower closing costs. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes.

Your Money. Personal Finance. Your Practice. Popular Courses. Home Ownership Purchasing A Home. What Is Fannie Mae? Fannie Mae exists to expand the liquidity of home mortgages by creating a secondary mortgage market. Fannie Mae does not lend money directly to consumers—it keeps money flowing to lenders like banks and credit unions through purchasing and guaranteeing mortgages.

When mortgages Fannie Mae owns or backs enter foreclosure, Fannie Mae attempts to sell the properties quickly to minimize the potential impact on the community. Article Sources.

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