HomePath Mortgage – An Excellent Mortgage Loan Program To Buy AZ Homes

The Fannie Mae HomePath Mortgage Loan Program is designed to help home buyers who are interested in buying a Fannie Mae repossessed home. The HomePath Mortgage was created to help sell Fannie Mae REO properties.

What Do I Need To Know About The Home Path Mortgage Program?

• 3% Down Payment – You only have to put 3% down on a HomePath Mortgage Program. Fannie Mae’s regular conventional mortgage requires 5% and FHA home loans require 3.5% so the HomePath Mortgage is an attractive mortgage program option if you are interested in buying a foreclosed home.
• With it being a loan for foreclosed home and with many of the Fannie Mae repossessed homes being Arizona there are no declining market restrictions on this mortgage. Fannie Mae and Freddie Mac as well as FHA and VA all have imposed some sort of declining market restrictions where they limit the amount of loan to value by down grading the appraisal 5% or by charging some sort of fee on the mortgage. With the HomePath Mortgage being designed for foreclosed homes Fannie Mae does not charge this fee with this loan program.
• No Prepayment Penalties This is great news for someone who wants to purchase a home and live in it for a short time and then turn around and sell the home in a few years. With some first time home buyer programs and down payment assistance programs there are restrictions on how long you must live in the home before you sell or refinance to avoid paying some sort of penalty or payback of the assistance received.
• Real Estate Investors Welcome – You can purchase more than one Fannie Mae REO property with this program. In fact Fannie Mae allows for the purchase of up to 10 properties using this program. In other conventional Fannie Mae and Freddie Mac programs you can only purchase up to 5 programs and with FHA home loans you may be limited to just one and perhaps 2 homes.
• Flexible mortgage terms – Depending on your needs, desires and qualifications you may be able to select a fixed rate mortgage, an adjustable rate mortgage, or an interest only mortgage. The better your credit, income and asset profile the more flexibility you will have in the type of mortgage you can get.
• Save on your monthly mortgage payment – The HomePath Mortgage does not require PMI, private mortgage insurance in many cases which can save you literally hundreds of dollars per month in your mortgage payment.
• The home value is the purchase price you negotiate with Fannie Mae – this means that there is no appraisal required for the HomePath Mortgage. Your loan amount will be based on the purchase price you negotiated with Fannie Mae.
• Must negotiate through a real estate agent – Fannie Mae has selected real estate agents all around the US where it has REO properties for sale to represent Fannie Mae in the real estate transaction. Local AZ based real estate agents will help you negotiate with Fannie Mae to arrive at an acceptable purchase price.

Unless you are an experienced real estate investor, our recommendation is that you have a buyers agent represent you in negotiating through the Fannie Mae appointed listing agent. The listing agent is technically working for the seller which happens to be Fannie Mae. Fannie Mae obviously wants to get the highest price they can for the home while you want the lowest price you can get. If you use the listing agent to negotiate you might not get the best deal.

If you need to find out if you qualify for a HomePath Mortgage complete our brief contact information form to the right and we’ll have one of our local Phoenix, Tucson, Flagstaff, or Prescott Valley qualified mortgage specialists contact you. Thanks and good luck with buying your new AZ home.