Homesteps Financing (not to be confused with Homepath)

[Rob C.]

Homepath financing (Fannie Mae) seems to get a lot of attention, but Homesteps financing (Freddie Mac) meanwhile has been flying under the radar as it has been rolling out. Freddie Mac appears to be following in the footsteps of Fannie Mae by offering financing incentives on some of their foreclosed Homesteps properties for sale. It's not as enticing as Homepath financing (no renovation loans for example), but I figured it's at least worth sharing. At first I thought it was just for owner occupants, allowing 5% down and no MI. However, when I called up the lender doing these loans he said that the program extends to investors allowing 15% down (and again no MI). I imagine the fees are probably pretty high like on homepath loans, but maybe it will be useful for a few folks out there who have limited cash that want to invest in as many properties as possible. I find it strange they don't mention the investor financing anywhere on their websites. Also, it's only available on some of their properties (i.e. I assume ones in relatively good condition). And currently it's only available in GA, FL, IL and TX, but is expected to roll out nationally through 2013. More information (albeit limited) can be found on their websites:
http://www.homesteps.com/homesteps/financing/index.html
http://www.facebook.com/HomeSteps
email: [email protected]

There may be more catches to the program that I didn't get in my five minute conversation with the loan officer (has anyone gotten a homesteps loan?). And again not as enticing as the homepath financing which allows 10% down payments. But on the flipside, it sounds like a good option on the surface, and moreover homesteps foreclosures seem to sell for a bit less than homepath ones. It seems to me Fannie Mae is really aggressive with their pricing, while Freddie Mac is a little more reasonable. Has anyone else noticed that?