As a first-time homebuyer, you may have never considered buying any of the foreclosed homes in your area for sale. However, a home that has been foreclosed on can actually be an appealing and affordable prospect.
You especially can find the appeal in buying this type of home when you go through a program that is designed to pair first-time homebuyers with foreclosed properties. You can find the ideal HomePath property to buy through this program by learning more about and taking part in the Fannie Mae HomePath program, as well as contacting an experienced HomePath listing agent like Carl Chapman REALTOR at eXp Realty.
Fannie Mae Homepath Program Overview
The Fannie Mae Homepath program is designed to match first-time homebuyers with Fannie Mae homes that have been foreclosed on and then listed for sale again. The overall emphasis of this program centers on making buying foreclosed homes easier and faster. It provides many of the tools that first-time buyers need to find, view, make an offer, and close on an eligible HomePath property successfully.
It facilitates the purchase of foreclosed homes that are listed for sale in this program by offering online training to people who are eligible to participate in it. This training in part explains the overall home search and buying process. It also goes into detail about the tools that are needed to become successful homeowners.
People who successfully complete the Fannie Mae Homepath program training receive a letter verifying their completion. They can present this letter, along with a mortgage pre-approval letter from a bank or finance company, to show that they meet the qualifications to find and buy a HomePath property for sale. They can also receive up to three percent closing cost assistance on eligible Fannie Mae homes that are available through this program.
Determine What You Can Afford
After you finish the Fannie Mae Homepath program for buying eligible Fannie Mae homes for sale, you then need to determine how much that you can pay for foreclosed homes that you will view and consider. You also need to realize that you do not need perfect credit to use this program to buy a HomePath property. You are eligible to take part in the program and use it to buy a home with a minimum score of 620.
Still, Fannie Mae recommends that you determine how much of a home that you can afford on the money that you currently make. You can use resources found on its HomePath website to learn more about budgeting for a house that you can afford to make an offer on and buy.
You also are advised to review, understand and, if necessary, clean up your credit. You need to achieve that minimum 620 score to meet the minimum credit requirements for taking part in and receiving financing help from Fannie Mae HomePath.
At the same time, you should review your finances and determine if you meet the debt-to-income ratio that Fannie Mae requires from borrowers in its program. It requires that you have a maximum debt-to-income ratio of 36 percent. In select cases, you may be allowed to have a DTI ratio of up to 45 percent as long as you meet the credit and income requirements of the program.
Finally, you should save up for a down payment to put toward the purchase of the HomePath property that you decide that you want to buy. The amount of the down payment that you need will largely depend on the asking price of the house and the terms of your mortgage. However, you should also keep in mind that this program could allow you up to three percent assistance in paying the down payment on the house that you have chosen.
Search for a Home
Finally, once you complete your Fannie Mae HomePathonline training, you can begin your search for foreclosed homes in earnest. You can benefit from hiring an experienced agent like Carl Chapman REALTOR from eXp Realty to assist in your search. He can listen to your needs and wants in a home and find Fannie Mae homes in neighborhoods and communities that appeal to you.
You can also use resources like the Fannie Mae Homepath home search website to find a HomePath property to buy. This online resource lists Fannie Mae foreclosed homes for sale throughout the area. It can show you eligible HomePath property listings according to the city or zip code where you want to live.
Make an Offer
The last step of taking part in the Fannie Mae Homepath program involves making an offer on the HomePath property that you want to buy. It is imperative that you keep in mind that offers on the foreclosed homes in the program must be made through the selling agent. Further, you must go through the online offer process that Fannie Mae sets up for first-time homebuyers.
An experienced Fannie Mae Homepath listing agent will know what this process entails and where to find it online. Because the process requires you to follow it closely and abide by all of the steps involved with it, it is critical that you work with a listing agent who has experience listing and selling Fannie Mae homes. You do not want your offer to be turned down or risk having to start the process over because of making a simple mistake.
Fannie Mae offers its HomePath program to assist first-time home buyers in finding and buying affordable foreclosed homes. Upon completion of the program, buyers can receive assistance with paying closing costs on Fannie Mae homes that they want to buy.
Because of the intricacies involved with making a successful offer on a HomePath property, you will want to hire and work with an experienced Fannie Mae Homepath listing agent. An experienced listing agent like Carl Chapman REALTOR from eXp Realty can listen to what your needs and wants are in a HomePath property, find foreclosed homes that may interest you and help you close successfully on one.