Missed the tax credit? Missed the days of low down payment loans? Well, there are still opportunites out there. Fannie Mae needs to move their REO (real estate owned by an institution) off the books, so they are offering a deal that requires only 3% down. Because these homes are in foreclosure, many are already priced at steep discounts.
For owner occupants: 3% down, no mortgage insurance required, no appraisal required. Down payment can come from a gift, a loan from a non-profit, state or local government or an employer. Seller can pay up to 6% of sales price toward borrower’s closing costs. For an investor, it’s 10% down, and seller can pay up to 2% of sales price toward buyer’s closing costs. Still no appraisal and no mortgage insurance.
To find the homes which are eligible, go to www.HomePath.com and search by state and county. From the Fannie Mae site you can also get set up to receive alerts on new HomePath-eligible listings. Currently, there are several listings in Davidson and Williamson County.
Condos are also eligible, even those that do not meet standard loan criteria. Homes are sold “as is,” and buyers have a 10-day inspection period. For the first 15 days of a listing, owner-occupants get preference and have what Fannie Mae calls a “First Look” period during which only owner occupants may submit purchase contracts. Following 15 days, if the home is unsold, it’s “open season” and non-owner occupants become eligible to purchase. Some of these homes draw multiple offers and sell quickly.
Gary Moore with First Community Mortgage is a banker approved for these HomePath loans. You can contact Gary at 615-579-8658 or at gary@brentwoodhomeloan.com to see if you qualify.
If you are interested in looking at homes or condos that are approved for a HomePath loan, feel free to contact Jeff Fulmer with Main Street Real Estate at 615-545-8611 or jeff@jefffulmer.com
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