For a limited time, the HomeSteps ^® and HomePath ^® programs are available to home buyers when purchasing a foreclosed Fannie Mae or Freddie Mac owned home.

Why do Fannie Mae and Freddie Mac have these properties for sale?

These homes unfortunately are foreclosures. Lenders work hard to to help homeowners prevent and avoid foreclosure; however, sometimes it is unavoidable. When foreclosures occur on mortgages in which Fannie Mae or Freddie Mac is the investor, their goal is to sell properties in a timely manner in order to minimize the impact on the community.

What kinds of properties are for sale?

Fannie Mae's HomePath database includes only properties that are owned by Fannie Mae, while Freddie Mac's HomeSteps only contains properties that are owned by Freddie Mac.

There is a wide selection of homes, including single-family homes, condominiums, and town houses—located in a variety of neighborhoods. The number, types and the sales prices of the homes that are offered for sale may vary substantially. Many of these homes are relatively new; however, older homes are offered in some areas. Some homes may require repairs.

How is buying a home owned or managed by Fannie or Freddie different from other home purchases?

Usually, when you buy a home, you deal with a seller who lives in the home. These properties are acquired through foreclosure, deed in lieu of foreclosure, or forfeiture. Other than that, there really isn't much difference.

When buying a bank owned home, you should know the condition of the property, as explained in more detail below, the cost of any needed repairs, and the steps in the loan qualification and closing process before you enter into a purchase and sales agreement.

Has the bank fixed everything in the house?

The bank may make some repairs to properties to increase their marketability; however, the buyer should be aware that other repairs may be needed. The bank sells each property "as is," which means that the buyer accepts the property "as is." The seller is not responsible for fixing any problems after settlement.

Even if the house has fresh paint, brand new carpet, new appliances, perhaps even a new roof or siding, it doesn't mean everything in the house is new, or even works.

Fannie Mae does not warrant or guarantee any work that may have been done on the property, whether as part of its efforts to sell the home or pursuant to conditions in the purchase contract. Where a home warranty is available, you may wish to buy it at your own expense.

You should also consider hiring a qualified professional to inspect the property, whether it has been repaired or not. Hiring a home inspector is a recommended practice, no matter what type of home you buy.

What can you tell me about this house?

If Fannie Mae knows of any hazards on properties we own or market, we disclose this information through our real estate listing agents. However, we may not have been informed by the previous owner of all hazards. We encourage you to have the property inspected by a professional before you buy.

What type of sales contract does the seller use?

Fannie Mae and Freddie Mac use a state-specific real estate purchase contract and a real estate purchase addendum for our properties. If there is anything in the document you don't understand or aren't comfortable with, you may want to contact a real estate attorney, the real estate sales professional who has listed the property, or any real estate professional of your choice to review these documents with you.

Do I have to use Fannie Mae's or Freddie Mac's selected title, settlement, or escrow companies?

No. You may designate the title, settlement, or escrow company of your choice, subject to the terms of the contract.

Will Fannie Mae accept an offer contingent on the sale of my house?

No, Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.

Why does HomePath and HomeSteps require a lender's prequalification statement before negotiating a home purchase offer?

The sellers want to be sure that prospective buyers will be able to complete the sales transaction, including obtaining financing when needed. Prequalification allows you to see how much house you can afford and the mortgage amount you may be able to qualify for before you make an offer on a home. It also helps you focus on homes in an affordable price range.

A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.

Does Fannie Mae and Freddie Mac provide special financing?

Yes: Special financing is available on many properties through HomePath® and HomeSteps
Call (651) 552-3681 or APPLY online.

Can I buy a HomePath or HomeSteps house directly without going through a real estate sales professional?

No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.

What happens if they gets more than one offer?

All interested parties may be asked to submit their best offer in writing though the listing agent no later than a specified date and time. Fannie Mae and Freddie Mac may accept or provide a counteroffer that we determine to be in our best interest. They are not obligated to accept any offer submitted.