Fannie Mae Wants You! To Buy a House!
By: Freeman Liz
September 23, 2010
Fannie Mae needs to get its record-setting inventory of foreclosed homes of its books pronto. And guess what? Others' loss could be your gain, thanks to a variety of programs designed to reward those who act quickly to purchase Fannie's REO (real estate owned). What's available to you?
How does a 3.5% credit sound? You can use it for closing costs (including interest rate buy-downs, FHA upfront mortgage insurance premiums, or VA funding fees), or to purchase a home warranty (repair and maintenance can cost 1% to 2% of a home's price each year, and a home warranty is a great way to hedge against emergency problems). Even the real estate agents get a sweetener of $1,500, probably to make up for the um, fun of being involved in an REO purchase.
This offer runs from today, September 23rd, through December 31st. So snoozers are losers.
Fannie Mae properties can be found on its REO Web site, www.HomePath.com HomePath properties include single family homes, multifamily residences, condos, and town houses. HomePath properties may also be eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing.
Freddie Mac has a similar program for its HomeSteps properties in which they throw in a home warranty for those who purchase a qualified home.
Don't see anything you like on Fannie's or Freddie's lists? You may still benefit from their programs because they induce an element of competition into the neighborhood. See a home in a similar price range? Maybe the seller can be convinced to compete with Fannie and Freddie and throw in a warranty too. In fact, many are getting pre-emptive and including it from the get-go. Your bottom line? It can't hurt to peruse REO when looking for a new home, even if you end up buying the conventional way.
And while you're shopping intelligently for your next home, don't forget to shop intelligently for your next home loan as well. Completing the form on this site is an easy way to get several mortgage interest rate quotes and make sure that you obtain a great deal.
