If you’re looking at homes on the market today, you’re bound to come across more than a few foreclosures. Thanks to the housing bubble burst, there are many fantastic houses on the market today that have been foreclosed on and reclaimed by the mortgage companies. Unfortunately, you may run into unexpected snags if you try to buy a foreclosed property with a conventional loan. The Homepath program is designed to overcome those roadblocks specific to foreclosed home and it can help you buy that great property you’ve got your eye on.
What is the Homepath program?
The Homepath program helps buyers purchase Fannie Mae properties that have been foreclosed on. If you’re looking into buying a foreclosed property, you might be able to get one of these special loans with unique requirements. You can use the loan to purchase a primary home second home, or an investment property. Some loans are even available for renovating a foreclosed home.
Why get a Homepath loan?
A Homepath loan has several benefits for the buyer. Your down payment can be as low as 5%, you don’t need an appraisal and you don’t have to purchase mortgage insurance. Expanded seller contributions to closing costs are also allowed. Although the loan is limited to Fannie Mae foreclosure properties, it could be just the loan you need.