With its 2010 pilot program in three test markets – Detroit MI, Orlando FL, and San Diego CA – a verifiable success, Fannie Mae has given the green light to nationwide online sales of its enormous inventory of REO houses. In fact, now all offers on HomePath properties must be made using the HomePath Online Offer system on Fannie Mae’s website.
One Stop Shopping to More Affordable Housing
All a real estate agent or real estate broker needs to do is, first, register with Fannie Mae and, second, submit the buyer’s offer online using a user-friendly program interface. No appointments or meetings are necessary to get a Fannie Mae offer confirmation. Once the offer is placed, the real estate professional must continue to track the offer status through HomePath.com.
Make an Offer Fannie Mae Can’t Refuse
Fannie Mae’s Jay Ryan, the VP for real estate owned (REO) homes, had this to say about the REO online program:
“Collecting offers online through HomePath.com will provide greater transparency for homebuyers and their agents… [making] it easier to sell properties to owner occupants, which is a major factor in helping stabilize communities across the nation.”
Potential owner-occupants (homebuyers who will occupy the house as their primary residence) have the First Look opportunity to view new listings of foreclosed Fannie Mae properties during the initial marketing period. This gives the owner-occupant homebuyer an important first-bite-at-the-apple advantage over investors who have no intent or desire to occupy the premises as a primary residence.
Once you’ve located your dream home – something that fits your price range, location requirements, and space needs – your real estate agent will simply log on to HomePath.com and place your online offer for you. (All offers for HomePath properties must be submitted by licensed real estate brokers or agents, buyers are prohibited from placing their own offers online.)
Financing Through Fannie Mae’s Participating Lenders
Fannie Mae has made the online offer submission part very easy, but what about the financing part?
Well, Fannie Mae insists that HomePath makes it easy to finance your potential new home as well. You find the foreclosed house you want, one that is either in need of repair or is ready for move-in, and start searching for a lender using the tools and resources made available on the HomePath website. Properties that qualify for HomePath Mortgage financing give the buyer the benefit of a “low down payment, no lender-requested appraisal and no mortgage insurance,” plus flexible mortgage terms (including fixed rate, ARM, and interest only mortgages), among other things.
The HomePath Renovation Mortgage lets the buyer borrow sufficient funds to purchase the property and renovate it – up to 35% of the completed value, but no more than $35,000. The mortgage terms include a low down payment (but at least 3%), flexible mortgage terms (either fixed rate or ARM), the renovation amount is based on appraised completed value, no requirement of mortgage insurance, seller contribution to the closing costs, and more.
It is worth a look see…
Maybe you filed for bankruptcy a couple years ago or lost your home to foreclosure and are ready to settle into something more permanent again, if you could only get a really good deal. You may now qualify under HomePath to purchase a new-to-you REO property from Fannie Mae. Contact our Tempe Bankruptcy Lawyers for more info.