Fannie Mae and Freddie Mac foreclosures
HomePath and HomeSteps homes in Colorado: buying a Fannie Mae or Freddie Mac foreclosure.
Fannie Mae and Freddie Mac sell the homes they take back through local listing agents, with a First Look head start for buyers who will live there. Here is how it works in Colorado and how it compares with HUD homes.
A live person answers. Not a robot, not a phone tree.
Fannie Mae and Freddie Mac
Through local listing agents on the MLS and their own sites.
Owner-occupants
The First Look period comes before investors can offer.
Most programs
Conventional, FHA, VA or 203(k), when the home qualifies.
Sold as-is
No repairs, the seller’s addendum, firm closing dates.
Two programs
What are HomePath and HomeSteps homes?
Fannie Mae and Freddie Mac back most conventional mortgages. When one of those loans forecloses, the home comes back to them and they resell it.
Fannie Mae HomePath
- Fannie Mae-owned foreclosures
- Listed on the MLS and HomePath
- First Look for owner-occupants
- Offers on Fannie Mae’s forms
Freddie Mac HomeSteps
- Freddie Mac-owned foreclosures
- Listed on the MLS and HomeSteps
- First Look for owner-occupants
- Offers on Freddie Mac’s forms
Both
- Sold as-is, inspection allowed
- Priced from valuations, reduced if they sit
- Usually vacant, often winterized
- Any lender, any program the home qualifies for
How buying works
How do you buy a HomePath or HomeSteps home in Colorado?
Get pre-approved
Conventional, FHA, VA or 203(k), or proof of funds.
Watch First Look
If you will live there, offer during First Look, before investors can.
Write the offer
Through your agent, on the seller’s addendum, with proof of funds or a pre-approval.
Inspect
As-is, so the inspection sets your budget. Ask for de-winterization first.
Close on time
The addendum sets the closing date; late closings can cost a daily fee.
Get pre-approved before the next foreclosure lists
Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003
Mike prices FHA, 203(k), VA, CHFA and conventional side by side, so your offer carries the loan that fits the house. Start the pre-approval or meet Mike. You may use any lender; Kenna receives nothing for the introduction.
Compare
HomePath, HomeSteps, HUD or bank-owned: which is easiest?
Easiest to finance
HomePath and HomeSteps homes are often in better shape than HUD homes, so conventional and FHA loans work more often.
Lowest down payment
HUD’s $100 down on FHA-insured HUD homes is hard to beat for owner-occupants.
Fewest rules
Bank-owned homes have no First Look or priority period, but the bank’s addendum is strict.
Most work needed
Uninsured HUD homes and some bank-owned homes; plan on cash or a 203(k) loan.
Quick answers
Questions people ask.
What is a HomePath home?
A home Fannie Mae owns after a foreclosure on a loan it backed. It is listed on the MLS by a local listing agent and on Fannie Mae’s HomePath site, and sold as-is.
What is a HomeSteps home?
A home Freddie Mac owns after a foreclosure. It is listed on the MLS and on the HomeSteps site and sold as-is, much like a HomePath home.
What is the First Look period?
A window after a HomePath or HomeSteps home lists when the seller considers offers only from buyers who will live in the home, plus some public entities and nonprofits. Investors can offer after it ends. The listing shows the dates.
Can I use an FHA loan on a HomePath home?
Yes, if the home meets FHA’s property standards and appraises. Homes that need major repairs may need a renovation loan or cash.
Is a HomePath home the same as a HUD home?
No. HUD homes come from FHA loans and sell by online bid through HUD Home Store with a HUD-registered broker. HomePath homes come from Fannie Mae loans and sell by offer through the MLS.
Free guide, PDF
The Colorado HUD Home Buyer's Playbook
How HUD bidding really works, the nine ways buyers lose, and the bid worksheet. 18 pages, free.
Why you want it before you bid:
- The 15-day owner-occupant window, day by day, so you never miss a deadline
- The net-to-HUD math HUD actually scores, with a one-page bid worksheet
- The nine ways buyers lose a HUD home, and how each one is avoided
Find every home available, not just HUD homes
Advanced home search: every listing on the Colorado MLS, with the full filters, on kennarealestate.com.
Opens kennarealestate.com, the Kenna Group’s full MLS search. HUD homes only? Use the tiles and the map on this site.
Ask us about HomePath and HomeSteps homes
Tell us where and how you plan to pay, and we will flag every new HomePath and HomeSteps listing while First Look is open.
Call or text 303-955-4220
A live person answers. Not a robot, not a phone tree.
