You may have seen the HomePath by Fannie Mae logo on our website, Facebook, and even attached to our listings in Homes & Lifestyles Magazine and wondered what exactly it is. Here is a list of some of the most Frequently Asked Questions about Fannie Mae & HomePath.
Why does Fannie Mae have properties for sale?
Fannie Mae works with mortgage servicers, housing counselors and other partners to help homeowners prevent and avoid foreclosure. Through KnowYourOptions.com, Fannie Mae offers assistance directly to homeowners so they can understand their options to avoid foreclosure. However, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae is the owner/investor, our goal is to sell properties in a timely manner in order to minimize the impact on the community. Additionally, Fannie Mae may acquire ownership of properties through a deed-in-lieu of foreclosure – a transaction in which the homeowner (mortgage borrower) voluntarily transfers the ownership of the property (the title and all property associated with it) to the owner of the mortgage in exchange for a release of their mortgage loan and payments.
What is HomePath?
HomePath is the branding used for all Fannie Mae-owned properties — anytime you see something labeled "HomePath", it has to do with the sale of our Fannie Mae-owned properties. For example, HomePath.com is our website, where homebuyers and real estate professionals can get detailed information on our listings.
What kinds of properties are available on HomePath.com?
HomePath.com includes only those properties owned by Fannie Mae. Foreclosed properties can represent a great opportunity for first-time buyers, move-up buyers, those looking for a second or vacation home or those looking for an investment opportunity.
There is a wide selection of homes in neighborhoods across the country — from single-family homes to condominiums and town houses. Keep in mind, the number, type and sales price of homes may vary substantially by market as well as the condition of the home. Many are move-in ready, while some may require light repairs or more extensive renovations.
How is buying a home owned by Fannie Mae different from other home purchases?
Usually, when you buy a home, you deal with a seller who lives in the home. Fannie Mae has acquired these properties through foreclosure, deed-in-lieu of foreclosure, or forfeiture.
When buying a Fannie Mae-owned home, you should know the condition of the property, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.
Has Fannie Mae fixed everything in the house?
Fannie Mae may make some repairs to increase the home's marketability but other repairs may be needed. Fannie Mae sells each property in "as is" condition, which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement.
Keep in mind, even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn't mean everything in the house is new, or even works. Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.
You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.
What can you tell me about this house?
If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.
What type of sales contract does Fannie Mae use?
Fannie Mae uses a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who listed the property, or any real estate professional of your choice to review these documents with you.
Do I have to use Fannie Mae's selected title, settlement, or escrow companies?
No, you may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.
Will Fannie Mae accept an offer contingent on the sale of my house?
No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.
Why does Fannie Mae request a lender's prequalification statement before negotiating a home purchase offer?
Fannie Mae does not require a prequalification statement or letter before negotiating an offer. However, by obtaining this statement or letter, you better position yourself to get financing and complete the sales transaction in a timely manner. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.
A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.
You may obtain a loan prequalification or a loan pre-approval at the lender of your choice.
Does Fannie Mae provide special financing?
Fannie Mae lenders have financing flexibilities* for Fannie Mae-owned properties, known as HomePath® properties, such as:
HomeReady® Mortgage - Fannie Mae's HomeReady is our enhanced affordable lending product. To support sustainable homeownership, HomeReady requires homeownership education that is provided by Framework. This product is not restricted to purchasers of HomePath properties. Click here to learn more.
HomePath Ready Buyer™ Program - Purchasers of HomePath® properties who complete a homebuyer education course are eligible to receive up to 3% closing cost assistance. The HomePath Ready Buyer online education course is also provided by Framework. In addition, you can combine both the HomePath Ready Buyer program and HomeReady Mortgage on the same home purchase (when purchasing a HomePath® home). Click here to learn more.
Interested Party Contributions – this is usually paid by the seller – HomePath properties qualify for expanded eligibility.
Multiple Financed Properties – flexibility for a home-buyer who already owns 5-10 financed properties.
Can I buy a house directly from Fannie Mae without going through a real estate sales professional?
No, Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.
What happens if Fannie Mae gets more than one offer?
All interested parties may be asked to submit their best offer in writing through the listing agent by a specified date and time. Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest. Fannie Mae is not obligated to accept any offer submitted.
All of our Fannie Mae properties are listed by our HomePath Pro: Bryce Conyers. However, any of our agents are able to assist you & they all work together for every client. If you have any questions or are interested in a HomePath property: Call Us!