Full disclaimer here. A few months have passed since my last transaction involving a HomePath Property. Fannie Mae would not agree to an appraisal contingency in that transaction (and hasn't for quite some time on any other of my buyer's transactions). The buyer was using an FHA-insured mortgage, so the lender obtained an FHA appraisal which placed a value on that property below the list price. In that instance, Fannie Mae agreed to reduce the price, but was not obligated to do so. In others, however, Fannie Mae refused to lower the price. The buyer was then forced to decide on whether to bring the difference between the list price and the FHA-appraised value to settlement or terminate the contract.
As others have shared, you really need to have experienced, strong representation in these types of transactions to minimize your risks and get safely to the closing table.
Hope that helps.
Georgia Real Estate Brokers Associate,
REALTOR®, Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
The homes are optimistically priced, buyers are offered "incentives" and told no appraisal is required and there are agents that are more interested in commissions than protecting buyers.
Many buyers hook up with a subpar agent, overpay and never realize it because there's not an independent appraisal. How does this movie usually end?
Be very careful and be certain that agent FULLY EXPLAINS the data just as an appraiser will - and it might make sense for you to pay the 400+- and hire one for yourself if you have any doubts.
Know your market and know that property inside and out
Sally Wildasinn, Realtor
ABR, ePro, SRS
You and every other buyer considering buying a bank owned property need to stop thinking that buying a foreclosure is a deal, They are not. I've been a full time Broker for 25 years, I've been licensed even longer and have extensive experience building and renovating homes. I've been flipping properties for almost 35 years and have never bought a foreclosure because unlike most buyers when I evaluate bank owned properties which I do regularly, I rarely if ever see enough reward to offset the added risk that comes with these transactions. I've attached a link below that offers a lot more information about buying foreclosures.
Hope this helps
in many scenario homepath would like to see if you have the fund to close if the appraisal comes in short. if your agent can send comp to support the purchase price then they don't ask for extra funds.
We close your loan Fast & Easy
HomePath® financing allows for a down payment of only 5% on owner occupied properties. If the property is a Second Home or an Investment Property, then it’s as little as 10% down. Also, there is no appraisal required for HomePath® financing, so you will not be charged an appraisal fee. There is also no monthly Mortgage Insurance on HomePath mortgages.
A HomePath Renovation mortgage is also an option for many HomePath properties. This loan program allows you to purchase and renovate in one single loan.
Prospect Mortgage is one of the largest volume HomePath lenders in the country and only one a few offering HomePath Renovation as option. We were also one of the first lenders to offer the loan program when it was launched in early 2009.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com to get started.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Wesley C Murphy
As mentioned below, the appraisal is not required on a HomePath property if you use conventional (Fannie Mae) financing to purchase the home. Your other out of pocket item would be your earnest money deposit which is not an expense but a pre-payment of your down payment funds.
If you choose to finance the home using other types of financing such as FHA, VA or USDA you would be required to pay for an appraisal.
By the way, you may already know this but Fannie Mae is running a promotion where they are paying 3.5% toward your closing costs. In this case even if you pay for an appraisal you would get the money back at closing.
We do plenty of Homepath loans and I would be happy to discuss your home purchase plans in more detail.
Timothy Brown | LPO Manager
EVOLVE bank & trust
11605 Haynes Bridge Road Suite 125 | Alpharetta, GA 30009
770.255.3880 | fax 678.935.1156 | cell 678.467.9959