Profile picture for KatieB85

Freddie Mac / Home Path loan.

Freddie Mac accepted an offer we put in yesterday (shockingly fast, I was impressed). The house needs minor repair, ie..the gutters on home are falling down and other little things. We are doing the FHA 203k, I didn't know if Home Path had a renovation loan? Which would be better? Another question is who pays the Realtor commission on a Freddie Mac home? I'd assume them but I just want to make sure my Realtor gets paid, she's been so helpful. Any advice with the 203k loan?
  • March 25 - US
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (2)

Best Answer

Profile picture for Kevin Cooter
Freddie Mac is not Homepath ---- they're "Homesteps"

Homepath is Fannie Mae, just to be clear.

If your offer WAS a Freddie Mac you'll see it on www.Homesteps.com not www.Homepath.com

Since you are getting an FHA loan (whether its a 203k --- meaning it needs MORE than $5,000 of work), or an FHA 203b--- meaning it needs "some" repair, but not over $5,000), OR getting a regular everyday FHA loan, it all depends on the condition of your home you just got under contract.

Vendors who are marketing bank-owned properties (Freddie Mac and/or Fannie Mae) hate it when your appraiser asks for work to be done ahead of time and typically tell you they won't allow you to do any work ahead of time. That's why an FHA 203k or FHA 203b loan works well (depending on whether it's under 5k of work or over 5k of work).  --- you can do the work AFTER you close.

Homepath (Fannie Mae) DOES have a renovation loan program too. However, my clients have enjoyed working with their local lenders who have experience in the FHA 203k or FHA 203b loan.  The Homepath Renovation lenders we've worked with were outside of the area.  If possible, you definitely want to work with a local lender for any rehab loan, in my opinion. That way, when something goes wrong or you need quick answers you can go down to their office and get what you need.

The Realtor commission is typically paid by the seller's real estate agent--- who collects it from Fannie Mae or the Freddie Mac vendor.

I would stick with the 203k loan from your local lender if I was you.

It's nice to see someone caring about their Realtor enough to make sure they get paid. I'm sure she's already made sure herself.  It sound like a win-win situation! 

Good luck!
  • March 25
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for KatieB85
Yes, I mean Home Steps, sorry to get it confused! Thank you so much for your input, I truly appreciate it! 
  • March 25
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.