What is the Difference Between Fannie Mae Homepath and Freddie Mac Homesteps?

February 27, 2013 by 3 Comments

Editor’s Note: Both the Fannie Mae HomePath mortgage and the Freddie Mac HomeSteps mortgage programs have been discontinued. However, HomePath and HomeSteps properties are still available for purchase using standard mortgage financing. This post has been updated to reflect the current state of both programs.

Fannie Mae and Freddie Mac both sell foreclosed homes they have acquired — and both offer programs designed to make those properties more attractive to buyers. While the names sound similar, HomePath and HomeSteps are quite different in how they work.

Here’s what you need to know about each program today. [Read more…]

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Search for foreclosed homes on Zillow

October 26, 2012 by 2 Comments

⚠ HomePath Program Ended October 2014

This post references the Fannie Mae HomePath Mortgage, which was retired in October 2014. Foreclosed homes — including Fannie Mae-owned properties — can still be purchased today using conventional, FHA, VA, or USDA financing. See today’s low-down-payment options for buying a home in Washington State →

Zillow has added a “foreclosure center” where you can search for foreclosed homes in your neighborhood. The search includes bank owned homes (REO) and pre-foreclosures (a home that is getting to auction).

Here’s a snap shot of what Zillow is showing as current foreclosures in West Seattle. The red houses are foreclosures and the blue houses are pre-foreclosures.

[Read more…]

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Buying Your First Investment Property – Low Down Payment Options

September 19, 2011 by 1 Comment

⚠ Program Ended October 2014

The Fannie Mae HomePath Mortgage — including the 10% down investment property option described in this post — was retired in October 2014. If you’re buying an investment property in Washington State today, there are still strong financing options available. See current investment property mortgage programs → or read the updated HomePath guide →

With real estate becoming more affordable and mortgage interest rates at an historic low, it’s easy to see why some people are considering buying their first investment property.  Financing an investment property has more requirements to it than buying an owner occupied property because it carries more risk to the lender. However if you have enough income, plenty of reserves set aside and good credit, you may be surprised how easy the process can be and what programs are available.

[Read more…]

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Fannie Mae HomePath Mortgage: What It Was and What Replaced It

October 15, 2010 by Leave a Comment

⚠ Program Ended October 2014: Fannie Mae retired the HomePath Mortgage program in October 2014. If you found this page searching for HomePath, read on to learn what replaced it — there are several strong low-down-payment programs available today for buying homes in Washington State.

Fannie Mae’s HomePath Mortgage was one of the most popular low-down-payment programs of its era. From its launch through October 2014, it offered buyers a way to purchase Fannie Mae-owned foreclosures with reduced down payments, no appraisal requirement, and no private mortgage insurance — a genuinely attractive combination that many Washington State buyers took advantage of.

When the program ended, I had helped many homebuyers use HomePath successfully. The good news is that the programs that replaced it are in many ways better and more broadly available — you no longer need to limit your home search to Fannie Mae-owned foreclosures to get similar benefits. [Read more…]

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