Financing in Queens>Question Details

Queenofqueens, Home Buyer in Queens, NY

I’ve heard about Fannie Mae programs. Will they really help me buy a house?

Asked by Queenofqueens, Queens, NY Tue Apr 2, 2013

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Terry Farnsworth’s answer
Programs like HomePath etc. won't "help" you buy a house per se, but they can make it a little easier. You'll still have to have an acceptable credit score and sufficient income to qualify for the financing. It's also important to note that Fannie and Freddie don't lend money directly, they simply mandated a set of guidelines that lenders have to follow when one of their eligible properties is involved. Not all lenders/banks currently offer/participate in this type of financing, so you'll want to shop around for a mortgage broker or lender that does.

Fannie Mae's HomePath program can help you in the following ways:

1. Properties typically have a "First Look" period where only owner-occupant buyer offers willbe accepted. This means you won't have to compete with investors.

2. There is typically no appraisal needed on these properties. This can be a good or bad thing depending on how you look at it - but as long as you are comfortable with the valuation your agent is giving you - the lender doesn't require the property to appraise out.

3. You can purchase with a low down payment, and not be required to pay mortgage insurance. You will however, pay a higher interest rate (which is currently tax deductible, however).

There are some other programs and "perks" that Fannie Mae/Freddie Mac offer - like HomePath Renovation financing (you can roll the cost of improvements into the loan up to a certain amount), and HomeSteps. Contact a mortgage professional who can go over all the pros and cons of each with you. Hope this helps!
0 votes Thank Flag Link Wed Apr 3, 2013
You would have to contact a mortgage professional to see what you qualify for. Once he runs your credit history and verifies your income he may be able to find a Fannie Mae program that works for you.
0 votes Thank Flag Link Tue Apr 2, 2013
Consult with any licensed loan officer, he/she can better advise after reviewing your overall financials.
0 votes Thank Flag Link Tue Apr 2, 2013
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