What is a Homepath Mortgage and How do I Qualify?

When someone is looking for a home, there are many options to choose from. For many people, the traditional route of becoming a homeowner might not be right for them. One of the options that people might not know about is called a homepath home.

This term is often used in concert with Fannie Mae. Fannie Mae takes the time to work with a variety of mortgage servicers and housing counselors to help those who own homes avoid foreclosure. They provide direct assistance to help someone avoid this difficult process.

One of the ways to avoid this is to help people sell the home. When someone purchases one of these homes that might be in danger of foreclosing, this is termed a homepath home.

This can provide some people with great opportunities to purchase a home at a bargain price through a homepath mortgage.

Financing a Homepath Mortgage

If someone is looking to finance a mortgage through homepath, there are a few points to consider. First, Fannie Mae has a lot of financing options for those looking to buy a house in this fashion. These will address numerous challenges that many people face when looking for a home. Some of the options include:

  • Offering low down payment options to help families afford homes more quickly
  • Those who elect to go with a conventional mortgage route might be able to have their private mortgage insurance (PMI) canceled once they build up 20 percent equity in their home
  • Education programs that help people learn about the responsibilities of being a homeowner
  • Upgrades to the home that help it to become more energy-efficient, leading to lower utility costs
  • Home improvement costs that might be built into the mortgage

These are only a few of the many benefits that people can enjoy when going with a mortgage through homepath. The goal is to help people become homeowners in a responsible and cost-effective manner.

Assistance Programs Through Homepath

There are lots of financial assistance programs that people have access to through homepath. There is a Neighborhood Stabilization Program (NSP) that will provide the homebuyer with funds through their programs.

There are also additional assistance options, such as the ability for Fannie Mae to waive an earnest money requirement for those buying a home with public funds.

Those who are looking to purchase a home with public funds can also do so without competition from investors thanks to the First Look marketing period (about three weeks after a home goes on the market). These advantages make the NSP funds an attractive option.

Take Advantage of the Low-Cost Mortgage Options Through Homepath

This type of mortgage is a great option for those who are looking for a fantastic deal on a home. There are numerous ways that Fannie Mae will assist homeowners in making sure they don’t just buy their home but also stay in it.

Furthermore, flexible financing options mean that even people with subprime credit scores might also be able to qualify. Those who are looking for a home should take the time to consider the homepath option. It might save a family a lot of money.

 

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