f you are looking for an excellent property that offers exceptional financing terms, you may want to look into the HomeSteps programs.
Homes purchased through this program have been taken back in the foreclosure process by Freddie Mac. The financing package, available in many states, includes a low down payment, usually 5%, and no mortgage insurance. The fact there is no mortgage insurance can save you thousands of dollars in premiums.
Financing: Financing is similar to the process you would go through in the regular mortgage process. However, the process may take somewhat longer. If you are planning to purchase a HomeSteps property, you need to demonstrate proof of qualification, which your lender will provide. You also need your own real estate agent, as well as an experienced real estate attorney.
Well-cared-for homes: As you won’t be required to get an appraisal, you can also save money. However, you should ask your agent if you have the option of a home inspection; as with any property you purchase, it’s always good to know what you’re getting in to. That said, Freddie properties are generally very well-cared-for and often move-in ready; Freddie even hires outside services, including landscaping, to maintain properties’ curb appeal.
One word of caution, Fannie Mae’s HomePath program, which was similar to HomeSteps, was discontinued on October 6, 2014, as Fannie felt special incentives were no longer needed. If you are interested in HomeSteps, consult your mortgage professional to ensure the program is still in effect.