Agent License to make an offer on Home Path??

Question

So I was reading one of the Getting Started articles here on BP and it led me to the Home Path website for foreclosed properties previously owned by Fannie Mae. I saw what might be an excellent deal for my first rental property and wanted to see what was required to Make an offer. After creating an account, I tried to make an offer but an error message appearing saying that I was not a licensed realtor and could not make an offer.

From what I've read, Home Path sales allow low money down (10%) which seemed perfect starting out in REI, but it looks like I'll have to bite the bullet and tack on realtor fees as well??

Has anyone purchased Home Path properties? IF a realtor is necessary, what additional costs would I be looking at? I guess this is the important step about partnering...

Thanks for your thoughts and help.

Amber Koontz · Answer

Melvin F. Did you end up going this route? I'd never heard of this until today, so I'm doing a little research for comparables.

Shawn Mcenteer · Answer

Melvin F. I have not purchased through homeopath but was very involved with researching the ins and outs of the system.

1.  You must owner occupy unit if you are buying in the first look phase which is a 20 day initial window, after 20 days the property is open to all.  If you can owner occupy you will be at an advantage, the majority of people who want homeopath  properties are investors in my area possibly the same in yours.

2. you can but down less the 10% as far is I recall it is standard FHA financing which allows for as little as 3.5% (keep in mind more PMI for less down) You may have to put more down if you are not owner occupying.  Homepath is meant for owner occupiers, they get the perks.

3. You DO NOT have to pay realtor fee.  unless something has changed since  I looked last, the seller will pay realtor commission.  you should find a realtor and use him/her!  Network, get referral, specifically ask for recommendation for homeopath familiar realtor.

4.  Additional cost will be standard closing costs.

5. Important you do need to get special homeopath loan, most lenders are familiar but not all offer it.

Tammy Vitale · Answer

depends on your goals.  That house has been very good for me.

Mel F. · Answer

Thank you. That's is very good feedback. Do you think Home Path is worth it versus other methods of obtaining foreclosures?

Tammy Vitale · Answer

p.s.  You cannot sell the property for 90 days after you acquire it (no problem for me as I'm buy and hold - but just in case you need to know that)

Tammy Vitale · Answer

I bought a HomePath in Fl earlier this year.  It was after the initial phase and I offered asking as I was up against competition (still a good buy) and conventional loan with 25% down.  That beat out a cash offer.  The house needed $18K rehab - about $5K over what I figured.  Seller paid agent but we paid total transfer taxes.  We had to escrow 10% of the offer price when we made the offer.

Wayne Brooks · Answer

As said above, Homepath (FNMA) is already paying the real estate agent fees.  Financing for Homepath properties is the same as any other property, as Homepath offered financing no longer exist (Homepath used ton have10% down investor financing, but no more).

Robert Mikes · Answer

My understanding is that as of Oct. 2014 the 10% down deal for investment properties on homepath is gone.