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My basic understanding of the properties listed on homepath.com is that they are fannie mae. I can't rent out those properties and only the owner can live in there. Is this true even after the property has been paid off that I can't rent it out? Are properties under $50K financeable through a mortgage or are they to be paid in cash? Most banks wouldn't loan a mortgage under $50K. Let's say the house if $35K, do I pay the usual 20% and do the monthly payment through "fannie mae"? If anyone can tell me the basics on how fannie mae properties work, I'd appreciate it.
My basic understanding of the properties listed on homepath.com is that they are fannie mae. I can't rent out those properties and only the owner can live in there. Is this true even after the property has been paid off that I can't rent it out? Are properties under $50K financeable through a mortgage or are they to be paid in cash? Most banks wouldn't loan a mortgage under $50K. Let's say the house if $35K, do I pay the usual 20% and do the monthly payment through "fannie mae"? If anyone can tell me the basics on how fannie mae properties work, I'd appreciate it.
There is an occupancy requirement but it is not for the life of the loan. I think it's one year.
Homepath is just a financing option, they're a "guarantor" or insurer of the loan, like FHA, or VA. Just because a home qualifies for homepath financing doesn't mean you have to use homepath financing. Homepath has rules & guidelines for financing, but individual lenders can toss more restrictions on top if they want, like a minimum loan of $50k. If you get a homepath loan, you make your payments to the lender/servicer, like any other mortgage.
The "owner occupied" part with homepath homes is usually a deed restriction - if the home is flipped or rented within a certain period of time after purchase, the buyer has to pay a financial penalty to the gov & may get blocked from purchasing future homes from homepath. Most of the time, that "owner occupied" stipulation comes off the properties after they've been on the market for a while - it used to be ten days after the listing went live. After that anyone could buy & do whatever they wanted with a property.
Homepath financing used to have really high fees & lots of additional hassles - in my state there was only one lender actually writing homepath loans & they were awful. I haven't kept up on the program because that lender almost ruined a deal for me with their dawdling. I found a local credit union who was a dream to deal with & never looked back.
My basic understanding of the properties listed on homepath.com is that they are fannie mae. I can't rent out those properties and only the owner can live in there. Is this true even after the property has been paid off that I can't rent it out? Are properties under $50K financeable through a mortgage or are they to be paid in cash? Most banks wouldn't loan a mortgage under $50K. Let's say the house if $35K, do I pay the usual 20% and do the monthly payment through "fannie mae"? If anyone can tell me the basics on how fannie mae properties work, I'd appreciate it.
Yes you can get an FHA or regular mortgage loan for $50K or under, it depends on finding the right lender. They are the ones that set their limits. It will be easier in a market that is geared for lower priced homes.
well let's say I can afford a homepath real estate priced under $20K, I can pay in cash but would rather chose the homepath loan path, do I show them what I make in a year to qualify? I would think if I don't make much, I would qualify to buy the property under $20K? Let's say my apartment rent is $500, I'd rather buy the cheap starter home than pay rent. Which route would you take?
Homepath properties go by income right? One that makes 6 figures wouldn't be allowed to buy homepath properties, right?
My basic understanding of the properties listed on homepath.com is that they are fannie mae. I can't rent out those properties and only the owner can live in there. Is this true even after the property has been paid off that I can't rent it out? Are properties under $50K financeable through a mortgage or are they to be paid in cash? Most banks wouldn't loan a mortgage under $50K. Let's say the house if $35K, do I pay the usual 20% and do the monthly payment through "fannie mae"? If anyone can tell me the basics on how fannie mae properties work, I'd appreciate it.
Homes listed on homepath.com are not necessarily homes that can't be rented out. Some of the homes listed are "First Look". They are usually homes that is for owner occupied only (usually 1 year). If a home isn't listed as "First Look", you can do whatever you want with it with the exception that if it's priced below way below market value, there will be a deed restriction. The deed restriction usually state something about the max value that the home can be resold with X month after purchase. So if you are a flipper, you just need to hold it for X months.
As for getting a small mortgage, no sure if Fn Mae offer financing anymore but Fn Mae homes can be purchased with mortgage. The issue you may have is obtaining a small mortgage from any lender. I've purchased a few Fn Mae (cash and mortgage).
With that said, note that most FN Mae properties need work. You may be able to find a mortgage broker that can work with you on wrapping renovation in to the mortgage.
well let's say I can afford a homepath real estate priced under $20K, I can pay in cash but would rather chose the homepath loan path, do I show them what I make in a year to qualify? I would think if I don't make much, I would qualify to buy the property under $20K? Let's say my apartment rent is $500, I'd rather buy the cheap starter home than pay rent. Which route would you take?
Homepath properties go by income right? One that makes 6 figures wouldn't be allowed to buy homepath properties, right?
Nope. It may depend in the market you are in. Never seen a FN Mae in my area with income restriction. Freddie Mac (Homesteps), I've seen with income restrictions.
Homepath properties go by income right? One that makes 6 figures wouldn't be allowed to buy homepath properties, right?
You have to find your own lender to get financing. Depending on the type of loan such as FHA there may be income limits, but they are not that strict. Homepath is not a lender.
Not all lenders finance a home as low as $50K or less but there are many that do. You just have to shop around - as a rule, if the realtor has listings under $50K, they will know a lender in the area that accepts mortgages that low.
Home path homes are just foreclosed homes. Home path financing is available on most, and requiresc3.5 percent dn for owner occupied and 10 percent down if not owner occupied (ie, rental home, investment property). If you have more than 5 homes financed you need 25 percent down for investment property.
You can buy a home path home using traditional, (other mortgage company) financong. It can be harder to do, because some of the home path homes don't meet traditional lending guidelines due to missing furnaces, appliances, water heaters or damage.
Home path does offer home path renovation financing on some homes that need repair which allows you to add in the needed repairs to the loan.
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