homepath questions?

Question

I'm planning on buying my first sfh for long term rental in the near future. I have found a homepath home that has caught my attention. So I wanted to ask a few questions before I wasted any realtor's time.

The home is currently in the first look process and has underneath it homepath renovation mortgage. Just looking at the pics it needs some flooring and cosmetic stuff. Does the renovation mortgage approval mean that there is something significantly wrong with it? Will they tell you what currently needs work or is it up to you to figure it out. They obviously think there is something wrong if they are advertising as renovation mortgage approved? Ac, foundation, ect...

Also, dumb question... Do they let you view the property with a Realtor? It is vacant. What is allowed as far as just going there and looking in the windows?  Is it OK to be nosey?

Their price is a little high to hit my target but I'll worry about that if I make an offer.

Thanks

Mike

James Wise · Answer

No problem with you going in and looking through the windows. An outside look is always a good idea.

You will have to see it with a Realtor. Seeing as it's an REO you will most likely need your own Realtor as REO listing agents generally are too busy to show their own REO's. (at least out this way, maybe it's different where your at)

Andrew Whicker · Answer

I'm a newbie, but I just put an offer in on a vacant Homepath duplex.  I'm going in with a FHA.  I plan on living in for a year then moving out.

The house doesn't seem to have more work than normal.  Some windows need replacing, the carpet is shot and the walls need paint and some walls need repairs.  There are some things that need more attention, but I don't think I need the tens of thousands of dollars offered by the Homepath.

Plus, the rate is high on homepath and I would need to put down 20% in order to buy a duplex.  You only need 5% if it is a single family.

PS: I used my realtor and went through the normal process of negotiating as I would have if I dealt with private owner who had an agent.  Fannie takes longer to reply and has a complicated addendum on the contract.  Otherwise, it seems to be the same conversation.

PPS: The house seems to have been vacated / winterized somewhat professionally.  Some windows are boarded up, but they are boarded up intelligently so as to minimize damage.  The dryer vents on the inside are taped up, the water was left on.

Mike Landry · Answer

thanks. I'm familiar with the loan approval guidelines. I guess what I'm really trying to say is my offering price depends a lot on what is wrong with the house.  But i can't find that out via an inspector/inspection until an offer is accepted. They are advertising it as needing "renovation". So will they tell me what needs renovation or why they are discounting the property.  Do they have to disclose known problems. Or does that lie completely on the buyer

I'm going to call my Realtor and take a look at it next week.

Thanks

Mike

David Begley · Answer

Mike, you may want to first see if Fannie requires the Buyer to occupy the house for a year before turning it into rental property.  Admittedly I haven't spent a lot of time on the homepath site, however I do know a real estate agent is required to go forward with bids and due diligence and I didn't run across many (or any?) properties that didn't require the owner to occupy the house for a period of time.  Good luck!

Wayne Brooks · Answer

Yes, you will view it, and make you offer, with a realtor.  Yes, if they're offering a Reno loan, it likely won't qualify for financing, as is.  I've never been hesitant to "just walk around a property".  If interested, view it a few days before the first look is over, and make your offer when/just before the first look expires.

homepath questions?

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