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What Buyers Should Know About Fannie Mae Homepath

Q: This home is Fannie Mae Homepath…what does that mean for a buyer?

What is Fannie Mae Homepath?

A: The Fannie Mae Homepath property means that this foreclosed property is now owned and being sold through the Fannie Mae Homepath program.

The plus side to this is that these programs usually have special benefits for buyers with often times lower down payments and flexible mortgage terms. The other plus is that they are typically listed for lower prices because they are eager to get this sold and off “their books”.

The downside is that the process involves more paperwork and can take much longer than a typical transaction so you need to have that flexibility with your timing to close because it can be challenging to determine how long the process could take. Sometimes it’s done relatively quickly and sometimes it can drag on for a few months, as is the case with most foreclosures.

Another thing to pay attention to is that the property you are buying is typically in an “as-is” condition so you really need to see the property beforehand to determine what you may be dealing with. You are allowed an inspection, and definitely “a must” for the purposes of determining what flaws it may have and then calculating what it may cost you to correct them. If there are too many flaws and it will cost too much to fix, then you have the right to back out of the deal with no penalties. You would just incur the cost of your inspection at that point.

You can go to this webpage to find out more about the program:

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