It seems recently we are doing more and more home inspections on Fannie Mae homes financed through Home Path. Home Path financing is a loan arrangement by Fannie Mae and makes available a number of residential foreclosure homes at dramatically reduced prices. The benefits of a Homepath mortgage are many. Buyers who wish to finance homes via a Home Path loan can get special incentives and also a low down payment option. Another important feature of these loans is that many Fannie Mae homes are eligible for government grants via HUD's Neighborhood Stabilization Program.
Home Path properties are typically repossessed properties obtained through bank foreclosures or "deed in lieu of" foreclosure. This allows the owner to walk away from the property and give the deed back to the bank with little of the negative stigma associated with going through a full blown foreclosure.
Real estate investors in San Diego are using the Home Path program to finance Fannie Mae homes that require low to moderate repairs. Investors can apply for homepath renovation loans which make available additional funding for repairs instead of having to take out higher interest construction type loans. One thing to keep in mind, don't be surprised to find out that there is high competition for these homes and it is not uncommon to have multiple buyers competing for the same piece of property. HomePath properties also move quickly so you must be ready to jump when you find a home that suits you.
Just like foreclosures, banks offer Home Path properties as-is so its equally important to get a home inspection to be sure the home is worth what the bank is asking for it. Doing a home inspection on a Home Path home is very different than a typical foreclosure inspection. Since the previous owner is giving the home back to the bank and avoiding foreclosure, it is rare to find the damage you might find in a foreclosure inspection like severed plumbing lines, concrete poured down toilet drains, and other forms of malicious damage caused by a disgruntled homeowner. The repairs we typically find during a Home Path inspection are usually components or systems within the home that are broken or in disrepair due to simple neglect.
Are you a first time buyer looking to buy a home and are considering a Homepath mortgage? You can find more information about these types of loans by visiting Fannies Mae's website setup specifically for homepath at http://www.homepath.com. As a first time buyer there are important things to know about these houses. Call us and we would be happy to help you understand what buying a homepath home entails. If you're an investor in process on a homepath mortgage already and would like to schedule a HomePath inspection in San Diego, we are ready to assist.
