What's a HOme Path home? (for sale, foreclosure, insurance)

[MonicaF]

Hi I was wondering if anyone can tell me what a HomePath Home is? A house down the street from me is up for sale being offered as a "HomePath" sale and something about getting 3.5% of the final sale towards closing costs?

[nana053]

Google is your friend:

HomePath - HomePath Financing

That's the official foreclosure site from FANNIE MAE

[chicagojlo]

You're leaving it really late to get the 3.5% closing cost assistance, you have to close by 6/30. Although it wouldn't surprise me if they extended it.

[sunnyandcloudydays]

i noticed there was not lender mi insurance needed with this program
just a note usually if this is the case there is an adjustment to the rate
so if you do end up going that way be sure to check the rate and the apr

looks kind of like an fha program without up front mortgage insurance fee and month mortgage insurance protection...

been a while since i looked into programs but this seems like a nice one if you have little money to put down

sometimes these programs are not as good as just a regular fha loan
in addition i believe you would still need the seller to cover the costs via a reduction with the cost of the home.

[chicagojlo]

I believe you are confusing a Homepath mortgage with a Homepath property.

A Homepath mortgage doesn't have any MI but will have a higher rate. You can only buy a Homepath property with this kind of mortgage. You can still get closing cost assistance, up to 6% although Fannie Mae generally doesn't offer any closing costs outside of any promotional incentives.

A Homepath property is one being sold by Fannie Mae, because they have foreclosed on it. You don't need to take out a Homepath mortgage to buy these properties, or to qualify for the 3.5% closing cost assistance currently being offered to owner occupants who close before 6/30.

[sunnyandcloudydays]

Oh I see the differences now
thanks for pointing this out.

[Chummy Waters]

Greaaaaaaaaaaat, more subsidized housing.

[chicagojlo]

How is it subsidized housing exactly?!

[Chummy Waters]

Originally Posted by chicagojlo

How is it subsidized housing exactly?!

If you want to go into the argument of Fannie Mae being a public co. vs. a GSE with an implied guarantee of backing by the feds vs. an explicit one, I'll say don't bother.

My opinion, and I'm sure it's shared by most, is that Fannie is still a govt. entity with Fed backing, especially since it still takes direction from Feds. That being the case, when Fannie offers "help" to anyone, it's welfare. That being said, too many grubby hands dig into the Fed welfare pot all across the board, from Oil companies, to subsidized housing, to factory farms.

[chicagojlo]

I'm sorry but paying up to 3.5% closing costs as a seller assist hardly qualifies as subsidized housing. If it did you'd have to call pretty much any home sold in the last decade subsidized housing.