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Mr. Obvious would like to point out that there are currently quite a few deals to be had on Foreclosed and bank-owned properties. One of the popular questions I get from clients is “what is the best loan program for people who want to buy a bank-owned property that is in need of a few repairs?”

I used to tell them about the Arizona FHA 203k loan.

Now I first ask them one simple question:

“Is the home currently owned by Fannie Mae by chance?”

If they say “no“, then I still tell them about the FHA 203k loan and how it is designed for homes that are in need of repair, and that generally speaking – it is a great loan program.

If they say “yes, it is currently owned by Fannie Mae“…

Then I tell them “BOY, ARE YOU IN LUCK! Fannie Mae has come out with a loan program called the Fannie Mae HomePath loan program and it is even better than the FHA 203k loan program.”

There are two different types of HomePath loan programs – one for homes that are owned by Fannie Mae and are not in need of repairs and homes that are owned by Fannie Mae and are in need of repairs.

HomePath mortgage financing highlights include:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance
• No appraisal required — the sales price is the value
• No declining markets policy
• No loans under $20,000
• No more than 10 financed properties
• No prepayment penalties

If you are interested in buying a home that is owned by Fannie Mae as your primary residence that is in need of repairs, the HomePath renovation mortgage program is the one that you will want to look into.

HomePath renovation mortgage highlights:

• Financing to fund both your purchase and light renovation
• Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
• No mortgage insurance

If you are considering buying a home that is currently owned by Fannie Mae, be sure to look into one of the two HomePath mortgage loan programs.  I don’t remember the last time that I saw a loan program that said “no appraisal, no mortgage insurance and a 3% down payment!” But then again, I don’t remember a time when Fannie Mae owned so many homes.  No wonder so many great deals are being had.

Don’t miss out!