So, you’re browsing through the online listings of homes for sale in Orange County, and you come across a great little house that says, “No Appraisal Financing!”.  Woohoo!  That sounds easy…

HomePath

You may have heard of a new Federal home loan program called HomePath.  HomePath loans feature several tempting benefits, such as low down payments, flexible terms (fixed-rate, adjustable-rate, or interest-only), low down payments, no mortgage insurance, and no appraisal fees.  In fact, you can get a HomePath loan with no appraisal at all!

Why would someone lend you money on a home with out an appraisal to verify the value of the property?  Because this feature is only available on Foreclosed homes that Fannie Mae owns.  In other words, since Fannie Mae owns the REO, they’re willing to loan you the money to buy it from them without an appraisal – as long as you accept it “AS IS”, with all potential repairs and rehab your responsibility.

Know Your Options

In addition to this one major caveat, there are other reasons you might want to consider something other than a HomePath loan.  HomePath loans tend to have higher pricing adjustments that will push your interest rate (and monthly cost) much higher than it would be with a conventional loan, or even an FHA loan with mortgage insurance.  If you’re interested in a home that requires major repairs, you can look into an FHA 203k loan – and build the cost of the repairs into your financing.

What’s the bottom line?  There is no free lunch, and if it seems too good to be true it probably is, so home buyer beware.  The “no appraisal” feature of HomePath loans was designed with a specific purpose of giving buyers flexibility in purchasing Fannie Mae REO’s, but it comes with a cost that may make other programs a better choice depending on the specific situation – on the specific Orange County home that you want to buy.  The details matter!

A Home Loan with NO APPRIASAL? Too Good to Be True? is a post from: Orange County Real Estate-Orange County Homes For Sale

Check out these Mission Viejo REO homes for sale - three great options for Orange County home buyers looking for a great deal in today’s real estate market.  Whether you are a cash investor looking for a good property to flip, or an FHA 203K borrower - basically building the cost of the rehab into your loan.  Any number of financing options will work!

There’s a four bedroom in Cordova Vista with a built in BBQ and Spa in the back yard, and beautifully landscaped front gated entry courtyard. 

 

Another option for the bargain-hunting buyer is a 4  bedroom in the El Dorado tract with a funky addition in the back yard. 

One more Mission Viejo REO that I would mention is 3 bedroom single level Madrid with an upgraded kitchen and hardwood floors.

Each of these Bank Owned homes for sale in Mission Viejo need work – ranging all the way from your basic paint and carpet, to missing lighting fixtures and rotted patio covers, to dryrot and suspicious holes in walls and ceilings, and major issues with unpermitted additions.  The good news is that they all have all the normal and customary kitchen appliances and bathroom fixtures (like toilets.)  For those of you who have seen an REO without a kitchen and with the toilets and bathroom sinks removed, you will know what a relief this is to see.

Check in with us for all the updated information on great deals on homes on the market in Mission Viejo and other great South Orange County communities like Rancho Santa Margarita, Coto de Caza, Ladera Ranch, Laguna Niguel, and Dove Canyon.  We never want you to miss out on a great deal on a home for sale that might be perfect for you!

Mission Viejo REO Homes for Sale – Market Update is a post from: Orange County Real Estate-Orange County Homes For Sale