Finding an affordable home to purchase can be a long and frustrating process. Looking at foreclosed homes may open up new possibilities, but it also comes with risks. To get started without getting overwhelmed, look for homes that are in foreclosure in your area on HomePath.com. It’s a program from government-sponsored mortgage company Fannie Mae that helps it sell the homes on which it has foreclosed. A lot of the homes are move-in ready, though conditions vary. Buyers may be eligible for one or both of two programs that can make the process of buying a home easier. The first is the HomeReady mortgage program, which allows low down payments. Meanwhile, the Ready Buyer program lets qualified buyers get a refund on up to 3 percent of their closing costs.
The other government-sponsored mortgage lender, Freddie Mac, has a similar program called HomeSteps. Freddie Mac provides cleaning and lawn services before its homes are put on the market. The Home Possible mortgage program allows down payments as low as 3 percent.
With both programs, investors are not permitted to make offers for the first several weeks the property is on the market, ensuring that people who are buying a primary residence get first dibs, instead of investors who have lots of cash to wave around.