Home Path mortgage is a special financing program offered through Fannie Mae. This home buying program offers attractive incentives to entice buyers to purchase foreclosure properties. Finance incentives include allowing buyers to purchase properties with a low down payment and flexible mortgage terms.

Fannie Mae's Home Path mortgage properties include single family residences, individual condominium units, and townhomes. Available real estate for sale includes foreclosures, deed in lieu of foreclosure, and bank owned properties.

Buyers should engage in due diligence when buying repossessed real estate. HomePath houses are sold in "as is" condition and generally require some level of repair. Fannie Mae occasionally invests in minor repair work to improve the property's marketability.

Homes which require repairs might qualify for Fannie Mae's Home Path renovation program. When this financing option is utilized, buyers can apply for additional funds to make necessary repairs. Not all Fannie Mae homes for sale qualify for Home Path financing. Only properties presented at HomePath.com are eligible for special financing.

Fannie Mae's HomePath mortgage financing program is a viable option for borrowers unable to provide a large down payment. One unique feature of this program is borrowers can obtain down payment assistance from outside sources. These can include a loan or monetary gift from family, friends or employer, charitable organization, non-profit group or grant money.

At present, the Department of Housing and Urban Development allows borrowers to apply for down payment assistance grants through their Neighborhood Stabilization Program. Additional information and eligibility criteria for NSP grants are provided at HUD.gov.

Borrowers must obtain prequalified lending in order to submit an offer on Home Path properties. Mortgage prequalification does not guarantee borrowers qualify for a home mortgage loan. Instead, it informs borrowers of how much money they qualify for based on their debt-to-income ratio. Borrowers can apply for prequalified lending with the mortgage lender of their choice. Oftentimes, the mortgage prequalification process can be accomplished online.

First time home buyers who purchase real estate prior to June 30, 2010 may qualify for the $8000 tax credit. Although this tax incentive is scheduled to expire soon, many mortgage financiers believe the credit will be extended. Individuals interested in buying a home should take advantage of tax incentives and first time home buyer programs prior to the anticipated deadline.

Real estate investors can take advantage of Fannie Mae discounted properties and NSP grants. Home Path properties are listed using the "first look" provision and allows first time home buyers and NSP recipients first dibs on the property. If no offers are placed on the property within 15 days of listing, investors can submit offers on up to five properties.

Real estate investors can use bank owned homes as short- or long-term rental property or enter into seller carry back mortgages to sell properties to buyers with poor credit. Seller carry back is a type of creative financing where sellers carry a portion of the financing. Buyers obtain the balance of mortgage financing through a conventional home loan.

Borrowers should conduct research to compare home mortgage rates. A 1/4-percent higher interest rate can add thousands of dollars to the loan. HomePath mortgage financing is available through several national and local lenders. For a full list, visit www.HomePath.com.

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About the Author:
Simon Volkov invites you to learn more about Home Path mortgage, first time home buying programs, real estate financing options, and the pros and cons of buying bank owned real estate, and more via his website at www.SimonVolkov.com. Subscribe to Simon's real estate mailing list and be the first to read newly published home buying information.
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