HomePath by Fannie Mae
Fannie Math HomePath is a home search service created and operated by the FNMA. It showcases thousands of Fannie Mae REO, or real estate owned, home listings. HomePath contains listings of all available Fannie Mae foreclosures. This search tool is accessible and available to many kinds of buyers. The service makes it easy for all types of buyers and organizations to browse through highly detailed listings of different types of homes to eventually find one to make an offer on.
While homeowners are the top priority for this service, investors, realtors, government organizations and non-profit organizations can also purchase these homes. HomePath has different procedures, incentives and programs for all the different parties that access this helpful tool. Fannie Mae HomePath provides useful information specific to each buyer, investor and realtor, along with access to more resources. HomePath also provides access to another Fannie Mae-operated option for purchasing affordable homes through its lists of short sale properties.
A Fannie Mae HomePath property is available to anyone looking for an affordable foreclosed home. However, owner-occupants, or buyers who plan to live in the house, get first access when a new property is listed. This is due to the First Look program available through HomePath. This program makes new Fannie Mae foreclosures available first to owner-occupants for the first 20 days of the listing. To learn more about the criteria to be considered an owner-occupant, you can download our comprehensive Fannie Mae guide.
These homes are affordable and competitively priced in comparison to non-Fannie Mae homes and are thus ideal for first-time homebuyers. Fannie Mae HomePath offers other incentives to homeowners, specifically new homebuyers, in the form of monetary assistance toward their closing costs. These new buyers can complete the ReadyBuyer educational course offered through HomePath to receive the discount. Participating in the course not only awards participants a discount but teaches them about essential home-buying and owning basics.
While prospective buyers are not required to be first-time homeowners, all Fannie Mae foreclosure buyers must make an offer through a professional real estate agent. Realtors possess the knowledge and experience to navigate the home-buying process and can assist with any complications or questions that arise.
Real Estate Professionals
Fannie Mae HomePath provides specific resources and information for real estate agents. Both types of agents are granted access to HomeStyle and HomeReady mortgage details and can make offers on Fannie Mae homes on behalf of clients. Real estate professionals are provided access to newsletters and updates regarding properties.
However, Fannie Mae listing agents, also called HomePath Pro agents, are certified to sell Fannie Mae homes while other private realtors are not. These agents were approved to do business with the company. They can list and sell homes through HomePath or their local Multiple Listing Service (MLS), as well assist their own clients in purchasing Fannie Mae homes. They are expected to follow Fannie Mae protocol and operate under specific standards, as they represent the FNMA.
To learn more about working with Fannie Mae as a real estate agent, download our in-depth guide.
All other agents who are not authorized to sell Fannie Mae homes still make clients aware of the benefits of buying HomePath properties. For example, FNMA offers unique incentives like the HFA Incentive Program, and new homeowners can take advantage of the HomeReady course. The company offers non-authorized real estate agents the opportunity to become certified through a registration and approval process.
Investors or buyers who are interested in utilizing Fannie Mae homes as investment properties are encouraged to participate in the HomePath buying process. Although the association’s primary goal is to house interested homeowners, Fannie Mae HomePath understands the value of investors and the increased value of renovated homes.
While the same incentives and programs that exist for first-time buyers are not all offered to investors, the company offers these buyers different incentives, such as special kinds of purchasing packages. For example, investors and house flippers are encouraged to participate in auction and structured sales. While auctions are usually held for new Fannie Mae foreclosures, other auctions are held for properties that do not sell well through traditional real estate marketing efforts.
Fannie Mae HomePath created a structured sales program specifically for investors. This FNMA program is essentially a beneficial financial agreement for all those involved. It involves tax deferment, guaranteed payments, potential for higher returns and smooth operation between multiple parties if necessary. However, Fannie Mae maintains rights to receive reporting and business plans from investors periodically, as well as to monitor certain activities.
Public Entities and Non-Profit Organizations
Public entities are local and state governments, public housing authorities, social services and any other public service organization that serves the citizens of the United States. Some non-profit organizations, specifically those focused on stabilizing neighborhoods and providing affordable housing, are also able to purchase Fannie Mae HomePath properties. These organizations are eligible to take part in the First Look program alongside owner-occupant buyers. Public entities and non-profits are given this privilege for several reasons, but one of the primary reasons is that they are using public funds.
Fannie Mae HomePath offers another resource for buyers looking for cheap homes. In addition to viewing Fannie Mae foreclosures, buyers can browse through short sale homes. The previous homeowners of these homes obtained Fannie Mae mortgages to purchase their homes. Over time, however, they found that they were not able to make payments before being forced to foreclose. In addition, the value of the home depreciated and is now worth less than the mortgage amount. The owners requested to conduct a short sale from their lender. This means that their house will be sold for less than the original Fannie Mae home loan that was taken out for it. While the bank may lose some money for this kind of transaction, an approved short sale can be beneficial to the lender and the previous and new homeowners in the long run.
What is Fannie Mae?
The Federal National Mortgage Association (Fannie Mae) provides affordable housing finance options for homebuyers and renters. Fannie Mae does not provide original mortgages. Rather, the organization purchases existing mortgages and guarantees them with government sponsorship. Fannie Mae mortgages have a fixed rate and can have a lifespan as long as 30 years.
Who is eligible for Fannie Mae?
Fannie Mae guarantees multi-family and single-family mortgages and loans. To qualify for either type of loan, an applicant must have an income lower than the local average, and the property he or she wants to buy must be worth less than the federal maximum. Further, applicants must have a credit score above 620. However, the minimum required credit score may change depending on how many properties the applicant plans to purchase.