October 6th Contract Deadline for FNMA Homepath Financing

After October 6th, Fannie Mae HomePath financing as we know it will come to an end. Current HomePath Mortgages offer low down payments, no mortgage insurance, expanded seller contributions, and other valuable incentives for owner-occupant buyers and investors on foreclosed homes in the Fannie Mae inventory.

Effective Oct. 7, both the HomePath Mortgage and HomePath Renovation Mortgage products will be discontinued. This comes at a time when foreclosures have fallen to its lowest level in six years. It’s not too late to find a great deal on a Fannie foreclosure and receive Homepath financing but you had better hurry! The general consensus is that the current program is far superior than the proposed changes.

Three new initiatives which they are characterizing as “financing flexibilities” will be replacing the HomePath programs.  These programs allow slightly higher loan-to-value limits for buyers financing 5-10 multiunit investment properties; allow “interested party” contributions of up to 6 percent of the selling price, up from 3 percent currently allowed;  and allow properties with Fannie Mae-imposed resale restrictions to qualify for Fannie Mae-backed mortgages.

HomeSteps Financing is a similar program offered by Freddie Mac for their foreclosed properties and is still available to select states including Florida.  HomeSteps offers some of the same incentives as HomePath such as no mortgage insurance, no appraisal and low down payment. A minimum 5% down-payment and closing within 45 days of escrow is required.

If you are considering purchasing a Fannie Mae foreclosure, in order to qualify you must meet the following requirements:

* The borrower must have an executed purchase contract for the sale of the related property that is dated on or before October 6, 2014;

* The loan file must be documented with a copy of the property’s “Listing Details” page printed from www.homepath.com on or before October 6, 2014, showing the HomePath(r) Mortgage logo, indicating the property’s eligibility for HomePath(r) Mortgage financing.

* HomePath(r) Mortgage meeting the above requirements must be funded no later than December 31, 2014.

Search all available foreclosures here.

Call Dawn at 850.814.5557 to find a Fannie Mae foreclosure before the deadline and to receive a list of Homepath lenders.

 

 

October 6th Contract Deadline for FNMA Homepath Financing was last modified: September 11th, 2014 by Dawn Dunlap

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