OfflineI'v been going over some foreclosure listings that my agent has sent me and I see a lot of them that say:
"This is a Fannie Mae HomePath property. Purchase this property for as little as 3% down! This property is approved for HomePath Renovation Mortgage Financing. This property is being sold as-is."
Has anybody worked with any listings like this and are they able to be wholesaled?
If so, is there anything different about the wholesale process than say an REO? Like different paperwork, terms, etc.?
Also, does anybody understand the HomePath Renovation Mortgage Financing aspect of the program and could you please explain it?
Any advice would be great. Thank you in advance.
Rick
Rick Merritt
Trident Realty, LLC
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Hi Rick,
Someone will probably jump in, but I can give what has worked for me and hope it helps.
Many of my wholesale deals and probably some of my rehab-flips have been Homepath or similar.
Homepath is a Fannie mae program meant to assist homebuyers (strictly owner occupant) get into a home with 3% down. Freddie Mac has Homesteps and HUD has a First Look program, as well. Then there is VA. Each of these have a period of time 2 weeks to 30 days where the listing is NOT available to investors. When that "First Look" period expires we can submit our offer. There is an additional offer form that has to accompany the offer, and submission is online only through a special portal. Your Realtor will handle on this-- no worries.
Just treat it like a regular deal. Typically these deals are a little harder to get deep deep discounts to the asking price, but just go by your comps. Often times the asking price is not as high (compared to comps) as a resale, or even an REO. Just do your homework and treat it like any REO.
I'm not familiar w/ the renovation mortgage program, but I'd bet money it is for owner occupants only. Check out the HomePath website-- it's informative.
Go for it!
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"Nothing happens until you place an offer."
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Hello Tina,
Your comment gave me a clarification on something that was in my mind.
I bought my home cash last year through Fanne Mae and I remember filling up a an agreement that I can not selll the house and must confirm that I am occupying it and I am not an investor. It was stated in the contract that I must live in the house for a minimum of one year before I'm able to sell it.
I bought the house just when it was just Coming Soon on the sign so that was still under that period when it was not open for investor. Now I got it...
I am learning and getting a lot of information just by reading all the comments in the forum. It is very useful. Since I became a memember of DG's family website, I hardly visit my FB
I wish us all a successful investing.
Shirley
In addition to Tina's post...
Fannie Mae offers the HomePath Loan Program on foreclosed and REO properties. It's an incentive program for home buyers who plan to buy as their primary residence (homestead) or 2nd home, and must live there for at least a year or two. The down payments are less than 20% and mortgage insurance is excluded on these properties, therefore, mortgage payments are lower. Minimum credit score is 660+ to qualify. Buyers can be awarded up to $35,000 for repairs or renovations for improvements. The properties have been pre-appraised and the renovation money is pre-determined. I believe there's a specified turn-around time period allotment for the renovations to be completed, too.
I've seen several of these in my area. It's a way of recycling REOs, I think. Home buyers get an opportunity to oversee or do their own renovations on their new home at a reduction! (...and it helps 'clean up the neighborhood').
Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
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That was informative. I've heard some of this before, but did not really know how it works. Thank you!
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Bought a FannieMae - hint, put in a low offer and watch what they come back with as a counter, if that is not good enough, wait 30 days and try again. The price usually drops 10% per month, plus they are willing to take much less than advertised...