ExpressPath Financing for REO Sales

If you are interested in what’s known as ExpressPath financing, then you need to know that you can only get it on Fannie Mae REO properties. Why would you want to get this type of financing? Because it offers very attractive terms, making it possible for you to own a home when you might not otherwise be able to do so. Not only is it available in 15 and 30 year terms, but ExpressPath also has low interest rates, very low down payments, and the waiving of mortgage insurance. As you can see, this is a very attractive arrangement worth looking into.

So, just what does the abbreviation REO mean? It is simply “real estate owned”. In other words, it’s a property that has been foreclosed on. You can usually get a better deal on REO properties than those which are purchased directly from an individual homeowner. What it really comes down to is that whoever foreclosed on the property doesn’t want to keep paying for the upkeep if they don’t have to. So, they are going to do what they can to sell the property and not have them on their books any longer. The entity Fannie Mae uses to do this is ExpressPath.

ExpressPath makes use of a low down payment fee (shortened as LDPF), therefore mortgage insurance isn’t built in to the rates. Potential home buyers can more easily compare rates amongst lenders because of the LDPF structure. ExpressPath uses an MI Substitute, which is similar to regular mortgage insurance.

How much of a loan’s financing that can be done through ExpressPath depends on different factors. For example, if it’s a single-family home that the buyer will in themselves, then 100% of the loan can be financed through the program. The only catch is that the potential buyer has to put $500 down, though that amount can be applied to closing costs.

Before any property can qualify for the ExpressPath financing program it has to be “move in ready”. While you may be able to get a fixer-upper this way, if anything needs to be done to make the property habitable, you will have to look elsewhere for financing. The NDPC will make the final decision as to what counts as “habitable” and they are also authorized to make necessary repairs.

If you are able to get financing through ExpressPath, you will get the LDPF and an interest rate of 3% or less. On top of that, you may be able to get back 5% in the form of a seller concession. These loans come in both 15 and 30 year terms. If you are able to make a down payment of 10% (this is not required), then all of the potential benefits are open to you.

With all of the advantages that go with it, ExpressPath financing is one of the best deals out there for purchasing a home. You have nothing to lose by applying, and just about everything to gain. Even better, you will be able to find out whether or not you’re approved in as little as thirty minutes in some cases.

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