How to Secure a Home Financing in Texas with the HomePath Program?
5 min read
Buying a new home can be quite a daunting task. Matters are made more challenging when you don’t have significant funds to pay a 20% down payment for the house. What can be done in such a situation? The answer is simple: with the help of the HomePath program, you can easily apply for home financing in Texas. This is a viable option for those who are having a hard time affording a standard market-rate mortgage. Therefore, choosing a HomePath program might be the ideal choice for you.
Let’s take a closer look what is a HomePath Program, how it can help you with home financing in Texas.
What Exactly is the HomePath Program?
The HomePath Program was originally started in 2009 by Fannie Mae. This was due to the collapse of the US housing market in the late 2000s; many houses had to be foreclosed by Fannie Mae. So, it was decided that these foreclosed houses would be offered to first-time home buyers or buyers who had not owned a property in the last 3 years. You will be provided financial assistance and can buy any of the foreclosed homes with as little as 3% down payment. You might even be reimbursed for the closing costs, which usually sum up to 3% of what you put down for the property. The HomePath Program was revised in 2015 under the name of the HomePath Ready Buyer Program.
The HomePath Properties:
When you apply for a conventional mortgage option, you have the luxury of choosing your own home in any prime location. When you decide to choose a HomePath financing program, things are a little different. For one, you can only buy a property that was foreclosed by Fannie Mae. But they offer a wide range of homes, from apartments to multifamily houses. One of the aspects of the Fannie Mae properties is that they are sold in the ‘as is’ condition. This means you can get them in good condition and other times not so good.
Often times these houses are foreclosed through a deal between the owner and Fannie Mae known as ‘deed in lieu’. The properties under this deed are given up willingly by the owners therefore they are in good condition.
On the other hand, the properties that are foreclosed by Fannie Mae, because the owner defaulted on his payments might not be in good condition. This is because the owner, due to foreclosing, doesn’t maintain the property or pay attention to its upkeep.
Steps to Secure Home Financing in Texas with HomePath Program:
HomePath Program is relatively easier to apply for when compared to traditional mortgage options. The process for applying to the HomePath program might be slightly different.
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Find a Mortgage Broker:
The real estate landscape is quite tricky to navigate. Therefore, having a reputable and reliable mortgage broker or real estate agent by your side is a good idea. Fannie Mae only accepts offers from approved lenders such as Dream Home Mortgage. The licensed real estate agents are able to process your offer and use their extensive knowledge to guide you through the process.
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Assess Your Finances:
Before you start looking for a house, make sure that you have your finances in order. You need to assess your credit score, Debt-to-Income (DTI) ratio and down payment. Buying a house is definitely a long-term investment that requires proper planning. Therefore, you should have a financial plan that outlines how much you are willing to pay and how you will manage the repayments.
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Getting Pre-approved:
Now that you know how much you are willing to invest in a property, you can get pre-approved for home financing in Texas. This gives you a concrete idea of how much loan the lenders are willing to give you. A preapproval also signals to the sellers that you are a serious buyer.
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Look for A Good HomePath Property:
To view a HomePath property, all you have to do is go online and search the database. This search will provide you with a general idea about the property such as its zip code, number of bedrooms and price and more. Fannie Mae offers competitive prices, and the goal is to sell it as soon as possible. You must visit the property with your real estate agent and note down any repairs and upgrades that it needs. This is because the homes are available in their as-in condition, so you will need to make the changes. Itemize all these factors into the budget when you decide on a sum for the house. It can affect the value of the house.
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Complete the HomePath Buyer’s Education Course:
It is one of the mandatory items on the list that you have to complete in order to submit your offer. The completion of this course also provides you access to Fannie Mae’s closing cost assistance.
The course is titled HomePath’s Ready Buyer program and it includes nine modules. The modules cover several topics such as homeownership and mortgage 101. The total hours that you will need to invest are 4 to 6 hours and it is an online course. The cost of the course is 75$ that will be reimbursed upon closure of a HomePath house.
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Home Inspection:
Once you find a property you are interested in, you need to hire an assessor. They will inspect the house and tell you all the crucial details about the property. Do not skip this step as it helps point out any discrepancies ad helps you in damage control.
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Finally Make an Offer:
After you have thoroughly vetted the property and are sure that you want to move forward with the purchase you can make an offer. Talk to your agent, gather the required documents, submit the offer and make sure that you request for closing cost assistance.
Get the Best Home Financing in Texas with Dream Home Mortgage!
Home Financing in Texas can be quite a tricky task, but with the right help, you can unlock the door to your dream home in no time. The HomePath program allows low to middle-income buyers to achieve their dream of homeownership. To apply for the HomePath program, all you need to do is book a free consultation with Dream Home Mortgage. Dream Home Mortgage can assist you with the HomePath program and help you become a homeowner with only a 3% down payment. So, what are you waiting for? Book your free consultation today!
