Has anyone ever bought a FannieMae HomePath property?

Question

I found a SFH that I'm interested in buying but it's a HomePath property. I was told I have to wait X amount of days before I can buy it. Is there a way around that? Can I buy it and not say it's an investment property?? Please share your experience if you have bought a FannieMae property.

George Hermann · Answer

They do not want to keep the property. You have to focus on your goals. Why do want this property and at what price is it the deal you want. Then forget about other investors or what will happen. Make your offer and negotiate. It will either work out for you or not. Either way, you made the right choice.

Mindy Jensen · Answer

@Bryan Bacallao, I bought a homepath house. I wanted to purchase it to live in while I was looking for a house, because my market was ridiculous and I couldn't find anything else. I thought I would just be there for a few months. I learned of the 1-year rule and decided to buy and stay for just a year, then move on to my dream house.

It was at the very end of the owner-occupant timeframe. I made an ultra lowball offer, then came up a bit when I found out there was an investor offer. Homepath wants to put in owner occupants, and that was the reason my offer was accepted.

If you can swing living there for a year, put the offer in as owner-occupant for the best chance to buy the house. If you aren't going to live there for a year, don't say you will. I had to sign all sorts of documents saying I would live there. I never had to prove it once I moved in, but mortgage fraud is mortgage fraud, and why chance it?

Like @George Hermann recommended, do your math, come up with your price, and make the offer. You make your money when you buy. If you over pay, you could make nothing for a long time. Let someone else overpay and not make money... Stick to your number.

Pam Krull · Answer

@Mindy Jensen Thanks for the tip on responding directly to member's posts, I wondered how to do that!

Jim Shepard · Answer

Bryan,

I have bought several Fannie Mae / Homepath homes including 3 in Cape Coral, Florida.  Unless you are planning on living in it, don't tell them that you will.  It's not worth the government coming down on you because you are a rich landlord!  Wait the 14 days and then make an offer.  I always work backwords when coming up with an amount that I am going to offer.  How much is fix up with an extra 20% fudge factor for problems that will occur?  I then build in an extra 15 to 20% additional equity for myself (Note I buy and hold).  I then add the above and subtract it from what I think the house is worth after the rehabbing.  Subtract a little for negotiating and present your offer.  If the house is a real mess and most of them are, I will send pictures of the property along with my fix up list.  One last thing that I have found in my part of Florida.  Check public records to find out if water, sewer and other city improvements are paid for or not.  My titles were always clean but they won't pay those debts off which can be 20 or 30 thousand dollars!

Russell Brazil · Answer

@Bryan Bacallao I have purchased two.  If you buy it during the owner occupant only window, you will need to sign an affidavit that says you will live in the property. Similarly you will have to apply for owner occupant financing. If you do both those things and do not live in it, it is mortgage fraud.

Just wait till they open up the window to investors and do everything legally.

Raymond B. · Answer

@Bryan Bacallao,

To make the @ work, do the following: Hold down the shift key and type @? Look below this Window, and you will see a list of names of people that have posted in this thread. Click on the name of the person that you want notified via an email, that you responded to them. If you are a Colleague with anyone that has NOT posted in the thread, and you want them to see your post, hold down the shift key, type the @ and the first 4 letters of their First or Last Name. Then look below this Window and click on that person's name. Raymond

Mark Gallagher · Answer

@Bryan Bacallao

I have seen with my own 2 eyes Fannie Mae pursue someone for falsifying their owner occupant certification. Bottom line, don't do it.

Mindy Jensen · Answer

@Bryan Bacallao, you hold the Shift key and type @? A list of names will appear below the reply box.

Bryan Bacallao · Answer

Wow! Now I feel validated because @Mindy Jensen replied to one of my posts! Thank you for sharing your experience. I'm going to follow everyone's advice and do it the legal way and submit an offer that makes sense. Thank you everyone who replied!! Btw I'm not sure how to reply and have ur @name show up in blue.

Peter Davis · Answer

Hi Bryan,

My office lists Fannie Mae properties primarily in Cape Coral.  As far as their pricing and offer acceptance strategy goes, I've found they typically won't respond to low-ball offers (I'm asked this all the time).  They set a price and ride it for approximately a month, then reduce it if there's been no activity or offers.  Then they'll ride that price, and so on, until they hit the magic number and get it sold.  For our listings they typically paint and replace carpet, do some landscaping and will sometimes include a new appliance package.

Let me know if I can help!

Has anyone ever bought a FannieMae HomePath property?

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