Besides HomePath being Fannie Mae related and HomeSteps being Freddie Mac related – what are the other subtle differences?
First, their similarities are that both offer financing terms, conditions, and features to the home buyer (not refinancing for a home seller) that may be attractive to the home buyer. For instance, no appraisal is required by HomePath loans and no PMI is required under either loan.
Freddie Mac sponsors the Certified Community Stabilization Expert (CCSE) training program for real estate brokers (an eight hour on-line course teaching the latest lessons for selling REO homes and to work more effectively with nonprofits and local governments and to give listing brokers the proper tools necessary to create neighborhood stabilization solutions).
HomeSteps difference? Their Good Neighbor Practices are intended to protect neighborhood values by requiring their agents show clean and maintained homes and sell them at market prices….wow!
How about HomeSteps financing terms?:
- No Mortgage Insurance – HomeSteps Financing does not require mortgage insurance, so you may save on your house payment each month.
- No Appraisal – HomeSteps Financing does not require an appraisal at origination, which may mean savings for you when you close on your new home.
- Low Down Payment – Put down a little as 5% when using HomeSteps Financing.
Fannie Mae financing features are:
- No lender-requested appraisal;
- As of November 16, 2013, HomePath loans require at least a 5% down payment that can be funded by your own savings, a gift, a grant; or a loan from a nonprofit organization, state or local government, or employer;
- Flexible mortgage terms (fixed-rate, adjustable rate, or interest-only);
- No mortgage insurance; ask your lender for cost details on loans without mortgage insurance;
- Expanded seller contributions for closing costs;
- Available for primary residences, second homes and investment properties; and
- Many condo project requirements are waived; ask your lender for details.