Home Buying in Chicago>Question Details

Angel, Home Buyer in Chicago, IL

Are there any advantages of buying a property under Fannie Mae Home Path?

Asked by Angel, Chicago, IL Sun Apr 29, 2012

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As little as 3% down and you can finance repairs to the property. Those are advantages. The FHA 203k is the same type of loan, but requires 3.5% down. There are also conventional products, but they typically want a little more of a downpayment.
1 vote Thank Flag Link Sun Apr 29, 2012
I can't thumbs up a comment so I'm giving this post the thumbs up. :) The "lack" of an appraisal is a blessing to some but could also be a nightmare to others.
Flag Wed Jun 13, 2012
One note of caution for live-in owners who are interested in multi-units, which are always a great alternative to an expensive single family mortgage, Home Path requires 25% down for these, even owner occupied. It's probably the one main case from my experience that I've found FHA more worthwhile for buyers with limited down payment money.
0 votes Thank Flag Link Wed May 2, 2012
Hi Angel,
There are incentive of buying a property under Home Path. You are not required to use HomePath Financing, however if you do, there is no appraisal, there is no mortgage insurance if you don't put 20% down, which means your monthly payment will typically be lower, and I've had clients who were able to get Fannie Mae to do some repairs for properties. Speak with a lender who is experienced with Fannie Mae Home Path, and I'm sure they would be able to give you the pro's and con's of the various programs that are available to you.

Cecelia Marlow
The Federal Savings Bank
Mortgage Banker
312-738-6294
0 votes Thank Flag Link Wed May 2, 2012
Angel,

Yes, there are many advantages such as low interest rates, down payment assistance, rehab loan, warranties, etc.


Sohail A. Salahuddin | Broker Associate I Visionary

Innovative Property Consultants Team l Sales and Leasing

Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


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0 votes Thank Flag Link Sun Apr 29, 2012
The only real advantage is that if you plan to occupy the property you will only be up against other buyers who plan to do the same for the first 15 days . After the first 15 days they will start to accept offers from investors .
0 votes Thank Flag Link Sun Apr 29, 2012
These are Foreclosed properties that are open to Investors after 15 days.
0 votes Thank Flag Link Sun Apr 29, 2012
3% down.

I would really talk with your lender and see what the different options are and what they mean to you PERSONALLY in your financial situation.
0 votes Thank Flag Link Sun Apr 29, 2012
The potential advantages have been stated, but there are some other decent conventional loans like Smart Move. My web site has a couple of lender references. The more lenders you speak wih the more options you might find.
0 votes Thank Flag Link Sun Apr 29, 2012
Angel,

No appraisal required is a big advantage.
0 votes Thank Flag Link Sun Apr 29, 2012
I'm not necessarily sure that is a big advantage. An appraisal is conducted to protect the lender, which simultaneously protects the buyer. If they are working with a competent Realtor who gives them a detailed CMA and walks them through the fair market value of the property, then it may be an advantage, but that is assuming a lot.
Flag Sun Apr 29, 2012
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