Are you a first-time homebuyer or someone looking for a second home or vacation property? Or maybe you’re an investor looking for a property for rental purposes. A foreclosed home may be a good purchase opportunity for you.

Fannie Mae provides help to homebuyers interested in purchasing a foreclosed property through its HomePath program. When Fannie Mae takes over ownership of homes that have been acquired through foreclosure, deed-in-lieu of foreclosure or forfeiture, its goal is to sell these homes as quickly as possible to lower the impact that these properties will have on the community.

Fannie Mae lists a wide variety of foreclosed homes for sale across the country on its HomePath website. Many of these homes are move-in ready, but some may require repairs or renovations. Additionally, Fannie Mae offers special financing for these homes through HomePath Mortgage or HomePath Renovation Mortgage loans.

HomePath Mortgage Loan

Benefits include:

• Only good on Fannie Mae-owned properties listed on HomePath website.
• Primary residence, second or vacation home, or investment properties allowed.
• Property must be move-in ready.
• As low as 5% down payment on primary residences.
• Down payment can come from your own savings, or it can be a gift, grant or loan from a nonprofit organization, state or local government, or employer.
• No appraisal required.
• No mortgage insurance required.
• Fixed-rate, adjustable rate or interest-only mortgages available.
• Expanded seller contributions toward closing costs are allowed.

HomePath Renovation Mortgage Loan

Benefits include:

• Only good on Fannie Mae-owned properties listed on HomePath website.
• Available for primary and secondary or vacation homebuyers and investors.
• Financing includes purchase and light-to-moderate renovations – up to 35% of the completed value, but no more than $35,000.
• 5% down payment requirement – funded by your own savings, or a gift, grant or loan from a nonprofit organization, state or local government, or employer.
• No mortgage insurance required.
• Fixed-rate or adjustable rate mortgages available.
• Expanded seller contributions for closing costs.

While HomePath mortgages have slightly higher interest rates, you can reduce your rate by paying points. Plus, when you consider how much you’ll save in mortgage insurance, the cost is offset. And you may find that your mortgage payment is actually lower than other available loan programs.

If you’re finding it difficult to get a mortgage on a foreclosed property, contact Grandview Lending in Indianapolis. We can help you find a mortgage loan through a qualified Fannie Mae HomePath lender. Call us today at 866.690.4920.

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