Fannie Mae Homepath property Seller Concessions??

Question

Hello Im putting in offer in morning on a fannie mae homepath property. I am financing conventional 20 percent down. Im not using homepath financing. Was wondering if i can ask for seller 6 percent concession for closing costs? Thought i remember hearing something that if it was not a primary home-which this will be a rental that you can only get 3 percent max? Anybody know if you can get 6 percent on investment property through fannie mae?

Stefan K. · Answer

Ron Snoes how did your Homepath purchase turn out?  Did you get concessions?

I'm looking at a Homepath property right now.  Haven't decided if I'm going to use the Homepath loan or go conventional.  I'm going to have my lender mock up both and then decide.  I'm sure he'll let me know what I can and can't expect, but thought I'd ping you on your deal.

Ron S. · Answer

Thanks Ken!   So it is possible to get 6 percent great info!  I am also buy and hold so price is not a huge concern either.

Ken Frauenthal · Answer

I had FNMA accept 6% back.  I am a buy and hold, so as long as the numbers make sense, the purchase price is not as much of a concern.  I did have to raise my bids to include some of the 6% back at closing, but I'm able to get in for less.

Ron S. · Answer

Wayne    Do you have any knowledge of the homepath financing i know you only need 10 percent for investment and no pmi or appraisal. But do they charge lots of extra fees and higher rates??

Wayne Brooks · Answer

Steve, LOL!
I see either one as "alternative financing".

Steve Babiak · Answer

Wayne Brooks that typo (or was that deliberate) would make that a sort of "alternative" financing :)

http://en.wikipedia.org/wiki/Homeopathy

Wayne Brooks · Answer

You might run into an appraisal issue, if it's a fairly new listing.  One reason FNMA offers homeopath financing on their properties is there's no appraisal, so they can sell above FMV.

Ryan Lundquist · Answer

I've never seen 6% back. 3% is the highest I've seen with Homepath and most others. Speaking of Homepath though, I've noticed the prices in my area in Sacramento tend to be higher than other sales nearby. Since buyers are not putting much down typically and there is no appraisal, Fannie Mae can sell these properties at a bit of a premium above other sales in the neighborhood.

Ron S. · Answer

Hi John   homepath financing was not offered on this property. Also have heard they hit you hard with fees and higher rates on the homepath loans.

John Mireles · Answer

Why are you not using Homepath? You're more likely to get your offer accepted if you use their financing.

John