Fannie Mae offering Home Buyer Incentives

mortgageporterraiseFannie Mae is offering first time home buyers up to 3% towards closing cost when they purchase a Fannie Mae HomePath property. On a $300,000 home, 3% would be up to $9,000 towards allowable closing cost!  A Fannie Mae HomePath property is a home that Fannie Mae has foreclosed on and now owns.

In order for the home buyer to be eligible for the Fannie Mae HomePath incentive, they must take Fannie Mae’s online home buyer class, which cost $75. Fannie Mae will reimburse the $75 to the home buyer at closing on a HomePath property. The class must be completed and the home buyer must obtain a certificate from the class prior to making an offer on a Fannie Mae HomePath property. 

The incentive is available for first time home buyers, which is defined as someone who has not owned a home in the last three years, who are going to occupy the home as their primary residence.

Your Real Estate Broker must request the incentive (seller contribution) on the Fannie Mae HomePath website when they submit the online offer and language must also be included in the purchase and sales agreement.

The property must be listed on Fannie Mae’s HomePath website and be eligible for the program.

The home buyer can use any mortgage program (Fannie Mae HomePath is no longer a mortgage program).  The incentive could be combined with the down payment assistance programs, such as Home Advantage – the only catch is that the home buyer will have to take two home buyers classes (a WSHFC approved class and Fannie Mae’s class).

For more information and full terms and conditions to the Fannie Mae HomePath incentive program, click here.

If you are considering buying a Fannie Mae HomePath property or any home located in the state of Washington, I’m happy to help you! Please click here if I can provide you with a mortgage interest rate quote for a home located in Washington state.

Fannie Mae HomePath now offering Financial Flexibilities

financial_flexibilityEarlier this month, Fannie Mae retired the Fannie Mae HomePath Mortgage program which was available exclusively to homes owned by Fannie Mae as a result of foreclosure. This popular program offered mortgages with no private mortgage insurance and no appraisal was required. Investors were able to buy HomePath properties with reduced down payments.

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Fannie Mae HomePath offering 3.5% towards closing costs!

mortgageporterraiseFannie Mae HomePath has announced they will offer up to 3.5% towards the buyers closing cost through March 31, 2014. Fannie Mae HomePath properties are homes that Fannie Mae owns through foreclosure. Fannie Mae offers special financing on these homes with reduced down payment, no mortgage insurance and no appraisal required. You can learn more about the Fannie Mae HomePath Mortgage by clicking here.

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Fannie Mae HomePath Minimum Down increased to 5%

This weekend, Fannie Mae will be updating DU (Desktop Underwriter) to reflect the new higher minimum down payment requirements. I’ve written about that here.

This new underwriting guideline will also impact Fannie Mae HomePath mortgages, bringing the minimum down payment from 3% for owner occupied purchases to 5% down.

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Three different 3 Percent Down Conventional Loan Programs

EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.

UPDATE February 21, 2014: Conventional financing currently has increased the minimum down payment to 5% from 3% unless you are considering the Home Advantage Mortgage Program. Mortgage programs and guidelines change constantly so please check with your local mortgage professional regarding what is currently available for you. 

I’m pricing out a scenario for a first time home buyer who’s looking at buying a home priced at $250,000 and they have roughly 3% set aside for down payment plus closing cost. Since they have excellent credit, they are leaning towards conventional financing instead of FHA, which has much more expensive mortgage insurance (upfront and monthly).

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What is the Difference Between Fannie Mae Homepath and Freddie Mac Homesteps? [UPDATED]

EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.

Fannie Mae and Freddie Mac both offer special incentives to entice buyers to properties they have foreclosed on. Fannie Mae’s program is called Homepath and Freddie Mac’s is Homesteps. Although the names some similar, their incentives are VERY different. What Fannie Mae Homepath and Freddie Mac Homesteps do have in common is that the properties are generally in better shape than other distressed homes.

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Qualifying to buy a $200,000 home in Seattle

I’m working with a first time home buyer who’s interested in buying a home priced around $200,000 in the greater Seattle area. I thought I’d share some of the programs we have available at Mortgage Master Service Corporation that may help her accomplish her home buying goals.

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Search for foreclosed homes on Zillow

Zillow has added a “foreclosure center” where you can search for foreclosed homes in your neighborhood. The search includes bank owned homes (REO) and pre-foreclosures (a home that is getting to auction).

Here’s a snap shot of what Zillow is showing as current foreclosures in West Seattle. The red houses are foreclosures and the blue houses are pre-foreclosures.

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