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Oct 05

Bank Homes Foreclosures and Home Path Mortgages

Bank homes foreclosures is a highly viable way of owning property. It is very attractive to buyers due to the feeling of security created by dealing with banks. Banks have always had the reputation of being on the level or above board and all one needs is a good credit standing to qualify for loans.

Sometimes people are reluctant to secure a loan to purchase bank homes foreclosures, probably because they feel their income or stature will fall short of the qualifications of banks. Perhaps they are not aware that Big Brother can help them out with Home Path mortgages, a program operated by Fannie Mae.

How can Home Path Help You Own Bank Homes Foreclosures?

The Home Path mortgage program was established to provide incentives for both banks and borrowers to induce sales of bank homes foreclosures. The real beauty of acquiring a foreclosure through a Home Path mortgage apart from the significantly lower price is the fact that Home Path will only require borrowers to put up three percent of the total down payment with great flexibility on amortization.

Home path support bank homes foreclosures that include town houses, apartments and condos as well as single family homes. Your research is still an essential component to the whole buying process as these bank owned Fannie Mae foreclosures are all sold in their present condition or as is. These homes will require some measure of repair or improvement so it is best to do a careful selection process. Depending on the home type, its general condition and its location, Fannie Mae can undertake minor repairs on some of these homes. For significant repairs, Home Path offers another line of credit, which falls under renovation or home improvement. This means setting up a mortgage in excess of the value of the home to free up some funds for the repairs.

To apply for a Home Path mortgage buyers must be pre-qualified by a bank. While not all pre-qualified borrowers are assured of financing, they at least have an idea of the amount of money they can loan. Another plus for Home Path mortgages is that it accepts down payment funding from outside resources such as a gift from your family, your boss, a charitable or non-profit organization. Borrowers can also avail of down payment assistance from the government via the Neighborhood Stabilization Program or the HUD. Will all these government incentives and tax .

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