Federal National Mortgage Association (FNMA)
The Federal National Mortgage Association (FNMA), also known as “Fannie Mae” has thousands of foreclosed homes in their inventory for purchase by owner occupants as well as investors. By logging on to their website at www.homepath.com, you can type in areas of interest where you would like to buy a home. Under the HomePath program, the overriding intention is to help owner occupants buy a home. Secondarily though, FNMA allows investors to buy their foreclosed homes after owner occupants have had a first shot at purchasing them. The First Look program allows owner occupants the first chance, ahead of investors, to bid on these properties during a fifteen day window. Once the window has closed, investors are allowed to bid. During the First Look time period, if an offer that has been submitted is acceptable to FNMA, they will accept it. Note that an offer cannot be submitted unless it is through a real estate agent. Normal contract forms from your state are used, but there are several other forms required by FNMA. One of the most important of these is the Owner Occupant Certification which states that the new owner will occupy the house within 60 days and will occupy the house for at least a year. If the owner fails to meet these criteria, FNMA can fine the Owner $10,000 plus reasonable attorney’s fees and costs associated to enforce the action.

HomePath financing is available in some circumstances and provides for a low down payment, no mortgage insurance, expanded seller contributions, and more. HomePath Mortgage is available for move-in ready properties for both owner occupants and investors. For investors, a limited number of HomePath lenders are also available.

Another great option is The HomePath Renovation Mortgage which provides both the funds to purchase and to renovate in one loan.

For either of these financing options, look for the HomePath Mortgage or HomePath Renovation Mortgage logos next to the property you are researching to indicate whether these options are available.

Note that you don’t have to use HomePath financing. You can use the financing of your choice from any lender, such as your local bank, credit union or other financial institution

For more information, contact Brockway Realty or visit www.homepath.com.