Hello! My husband and I are in the very beginning stages of looking for a new home. We look at the listings every night and have been stopping by open houses and whatnot for the past month or so, but haven't signed a contract with a realtor or are pre-approved yet.
There are a few houses that I like that are home path properties. I've done a little googling and research but I wanted to know what if anyone had any opinions or experiences with one. I'm getting the impression they are Fannie Mae foreclosures that are open to all, not just first-time home buyers, as long as you get a loan through Fannie Mae, and you can place as low as 3% down (even though we'll prob do more). Is that pretty much it, or is there something more? Thanks!!!
Re: Home Path Houses
The "draw" with the Homepaths is that they are already approved for a Homepath loan, which has fewer requirements than any typical loan (no appraisal, lower downpayment, no PMI); however, the interest rate is significantly higher.
We purchased a Homepath with an FHA loan, 3.5% down, but you could use other traditional loans as well. We were open to whichever funding option was the best deal for us, and it just worked out to be FHA.
Note - most Homepath properties will be listed STRICTLY as-is, but always ask for major repairs anyway. Ours could not pass FHA in the condition it was in, and we were able to get approximately $1000 worth of repairs done. Make sure you get a good inspection.
All in all, the Homepath sale was very similar to a regular sale.
we're buying a home path property, which was a foreclosure. We've had a pretty good experience so far. They threw in a 2 year home warranty for no additional cost to us, plus they put in a new fridge, oil tank, carpet in all 3 bedrooms upstairs and a new roof.....must have been in pretty bad shape.
We're getting a traditional loan and put down 5%, but could have gone with FHA loan and put down 3.5%
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