Beginners- Looking at a Fannie Mae HomePath Property

2 Replies

Hey BP 

My husband and I are new to real estate investing. We are planning to flip our first few homes and use the capital built to buy rental property. We have found what seems to be exactly what we are looking for and after reaching out to the seller and doing more research we received this notice

"This is a Fannie Mae HomePath Property. The seller has directed that all offers on this listing be made using the HomePath Online Offer system at the HomePath website Buyers, complete the HomePath Ready Buyer homeownership course on homepath. Attach certificate to offer and request up to 3% closing cost assistance. Check HomePath for more details"

We have no experience with Fannie Mae, and don't know anyone who has bought property from them. We are afraid it will be a messy drawn out process and since we are so new to this we are afraid of getting tied up into some waiting game. So my question is...would buying our first property through Fannie Mae (no matter how good of a deal) be a mistake? 

Thanks in advance for your help! 

Laura & Scott 

I bought a home through them last year. I thought it was a very easy process. They did not drag anything out and they have very tight deadlines. You are more likely to cause delays then they are. In my experience, when a home hits the Homepath website, it has been through everything they need to do to just sell it. I have also bought through www.auction.com and another REO. Fannie Mae was the easiest. I did buy the Fannie Mae home as a personal residence so that may have made a difference.

You have to have a Realtor to bid. We just used one from the website. Good luck!

Originally posted by @Laura Angus :

"This is a Fannie Mae HomePath Property. The seller has directed that all offers on this listing be made using the HomePath Online Offer system at the HomePath website Buyers, complete the HomePath Ready Buyer homeownership course on homepath. Attach certificate to offer and request up to 3% closing cost assistance. Check HomePath for more details"

This language assumes you're purchasing the property to live in.  It also suggests that the property may be a "First Look" property, only available to buyers that intend to live in the property for the 1st 30 days of the listing.  Hire an agent to avoid wasting time looking @ properties you can't invest in or taking classes that are not for you.  

We have no experience with Fannie Mae, and don't know anyone who has bought property from them. We are afraid it will be a messy drawn out process and since we are so new to this we are afraid of getting tied up into some waiting game. So my question is...would buying our first property through Fannie Mae (no matter how good of a deal) be a mistake? 

Buying from Fannie Mae isn't a mistake but you need to be mindful of some of the deed restrictions Fannie Mae has on some, not all,  properties.  The 1st restriction limits the size of the mortgage you can record.  If you're planning on borrowing money to purchase & renovate such a restriction can be problematic for your lender.  The 2nd restriction is not being able to sell the property for x # of days.  The last property we purchased had a 90 day restriction.  The 2nd restriction is not that problematic.