As of October 6th, 2014 Fannie Mae has ended its HomePath Renovation Program. The good news is the housing market is picking up and the inventory of foreclosed homes has been dwindling. However many areas around the country still have a large inventory of homes you’ll want to check out and why we’re leaving our links to Fannie Mae homes on our blog.
So how do you look at these properties now that the renovation options no longer exist? You now have to secure mortgage insurance if you don’t have a large down payment. And, let’s not forget you’re going to now need an appraisal that supports value in an “AS IS” condition if you’re thinking about traditional financing. The fact remains many of these home still need repairs or could use a remodel and traditional conventional financing might not be an option.
Before today, Fannie Mae’s HomePath program helped home buyers of foreclosed properties get cost-effective mortgages, including cash for repairs and remodeling on homes owned by Fannie Mae along with other benefits that just aren’t available anymore.
But don’t be forlorn, as Fannie Mae is making up for these program withdrawals with a number of financing flexibilities. Fannie Mae will allow interested party contributions (contributions from the seller, the lender or anyone who stands to benefit from the sale) of up to six percent of the selling price; up from three percent. That’s right in line with the FHA 203K Home Renovation Program and the best solution for purchase these homes for owner occupying home buyers.
Fannie Mae is also removing the resale restrictions, which require a length of time before reselling these homes. If you’re a property investor, check out the Fannie Mae HomeStyle Program. Since FHA doesn’t allow for investor purchasing, it could be the perfect option. It works a lot like the now non-existent Fannie Mae HomePath Renovation Program and many real estate professionals refer to it as the conventional alternative to FHA 203K for investors and second homes renovations.
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A SIMPLE HOME SHOPPING INSPECTION TOOL
Organizing your home shopping experience affords a wise decision making process. This simple home inspection tool makes your ultimate buying decision a smart one. To print this document click on “Open in New Window” located at the lower right corner; click on “File”; then click on “Print”. In the center of the screen you will have the option to “Create A Printable PDF of the Presentation”.