- Dennis Norman
Fannie Mae just announced their new “First Look” initiative which is aimed at supporting neighborhood stabilization and promoting home purchases by owner occupants by providing owner occupants an advantage in purchasing Fannie-Mae-owned foreclosed properties.
Under the First Look program only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.
In addition to First Look, buyers using Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program, HOME Investment Partnerships Program funds from HUD, local housing trust funds, or charitable foundation funds may also qualify for the following benefits:
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Deposit Waivers – Fannie Mae will waive the earnest money/deposit requirement for public entities using public funds to purchase a Fannie Mae-owned property. Individual homebuyers who have qualified for public funds and want to purchase a Fannie Mae-owned property do not have to meet the usual earnest money/deposit requirement. Deposits for these buyers can be as low as $500.
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Reserved Contract Period – Upon receipt of an acceptable offer, buyers have the ability to renegotiate their offer after obtaining an NSP-required appraisal.
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Extra Time for Closing – Buyers receive up to 45 days to close — 15 days more than is usually permitted for purchases of Fannie Mae-owned properties.
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I have been on SSDI since 2000 and would like to buy a house in Wrightwood, CA where I live and currently pay $850 rent each month. I need to reduce this rental payment to somewhere between $500-650. I do because of being on a fixed income have bad credit, my debt is about $5000. I do have a small job of less than 20hrs/wk but my total monthly income is $2980 but living expenses come out of that. I would need help with the down payment and possible some for restoration, most of the houses in Wrightwood need weatherization and some termit work.
Please let me know, even with the bad credit, if I can get into some program to buy a home. Also, I would be a first time buyer.
Thanks for the comment Sharon,
I would suggest you get with a reputable, local mortgage lender and have them look at your situation. After qualifying you they will be able to let you know what loans may be available for your situation, and if the credit is an issue, may be able to guide you and help you get your credit in shape to be able to qualify.
You may also want to talk with a Realtor in the area and see what may be available in terms of a lease/option.
Good luck
You know, I had a very well thought out, LONG post that I was just about to submit. I hate long winded issues what can be summed up quickly… Here’s my issue:
I am a Armed Forces Vet, first time homebuyer with a credit score between 710 and 740, I have over 10 grand to make this purchase happen… I am looking at houses between 20 and 60 k… I have found some really good deals…
However, the realestate agency that controls the Pinnellas County Florida Homepath properties is either crooked or ignorant. I need to know where and who to officially complain to… I have to be one of the better candidates for
This realestate agency either has no clue what they are doing, or they are purposly giving the run around to primary occupancy, (first look) homebuyers. The reason for that can be explained as follows: Looking into thier sales of homepath more vividly, I have found the overwhelming majority of thier homepath properties have been purchased by investors..I believe this realestate agency must be taking illegal kickbacks… Then again, its not for me to say, but I do want to inform whoever needs to be informed, so they can pull Sunraye Realty heads out of their rumps and I can buy one of these properties.
thank you,
please reply to me at my email.
(email address removed by editor for spam protection for Steven)
Steven
Thanks for your comment, sorry to hear about your problems with purchasing a home…It does sound like you are a well qualified buyer! I have done some research and cannot find a department at Fannie Mae that deals specifically with complaints about the Homepath program, but I did find what I think would be the best place to start which is the Fannie Mae Resource Center – Information on them, and contact phone and email are below:
Also, I know of many very good, professional REALTORS in Florida…If you would like for me to recommend one to you in the Pinellas County area that may be able to assist you just let me know.
Additionally, you didn’t mention the name of the brokerage you are having problems with but if they are REALTORS you may want to contact the Pinellas Realtor Organization if you wish to file a complaint. The link to their site is:
http://tampabayrealtor.com/index.php?option=com_content&task=view&id=23&Itemid=46
The link to their “contact us” form is:
http://blog.mypinellas.com/contact-us/
Finally, whether a member of the REALTORS(R) association or not, all real estate brokers and agents in Florida are licensed by the Florida Department of Business & Professional Regulation…If you wish to contact that licensing body to inquire about the broker or to consider filing a complaint, below is the contact info:
Link to Real Estate Division of the Florida Dept of Professional Regulation: http://www.myfloridalicense.com/dbpr/re/frec.html
Link to state law and rules governing real estate brokers and agents:
http://www.myfloridalicense.com/dbpr/re/statutes.html
Link to the page explaining the complaint filing process:
https://www.myfloridalicense.com/entercomplaint.asp?SID=
I hope this helps, good luck,
Dennis
You have been more than helpful and very insightful… and Dennis, … thank you very much…
Sincerely,
Steven
Does Fannie Mae have a policy in place to give me first look to buy my house, as an existing tenant, who is pre qualified for a loan? I have been renting this house for 4 and a half years, and my landlord was forclosed on. The property did not sell at auction and rescinded to the bank. Now that Fannie Mae aqquired the property from Wells Fargo Home Mortgage, Fannies servicer is really gung ho to push me and my family of 7 out into the street.
Charles,
Unfortunately I’m not aware of a fannie mae program that would give you first shot at the house….Dennis
Fannie mae does have program for renters of forclosed properties, at least in california.
Charles,
Anne’s comments mentions a program existing in California…I have not done exhaustive research but did spend a fair amount of time on Fannie Mae’s website and cannot find anything that addresses your situation….what I did find is a program where Fannie Mae will offer you a month-to-month lease after foreclosure…info on this is at:
http://www.fanniemae.com/kb/index?page=home&c=homebuyers_supportforrenters&searchid=
What I would suggest is talk with the Fannie Mae property manager and express your desire to purchase the home…perhaps they can communicate that to their contact at Fannie Mae and see if there is a way to do it…good luck
I am currently have a contract for a Fannie Mae Homepath property. The lising agent says he will not honor Fannie Mae 3.5% closing cost incentive because there was a highest and best offer situation. I would like to know if there is any truth to that, I am an owner occupying buyer and I will be closing before 6/30/2010.
Mark
It sure sounds like you should qualify for it, provided the house you are buying was/is on the homepath website…Here are the requirements for the 3.5% incentive from the Fannie Mae site, and I don’t see anything about a “highest and best offer” exclusion…
Special Offers
Closing Cost Assistance and Appliance Incentive for Fannie Mae Homes
Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home by June 30, 2010. Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:
* Closing costs;
* The purchase of new Whirlpool® appliances by Fannie Mae; or
* A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.
To be eligible for this incentive:
* Property sales must close by June 30, 2010
* Buyers must be owner-occupants, investors are excluded
Contact a Fannie Mae listing broker for more information.
*Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.
Here is the link to the page on the Fannie Mae Site I’m referring to…Good luck, I would love to hear how this turns out…
http://www.fanniemae.com/homepath/incentive/index.jhtml
Also, here is an 800 number for Fannie Mae for consumers…you may want to give them a call and tell them about the situation: Fannie Mae Resource Center at 1-800-732-6643
Good luck, and again, I would appreciate it if you would post a reply with the outcome…Dennis
There are a lot of good issues here in this article. Further research would demonstrate so.
However, some of the important aspects of real estate are best handeledby experienced individualswith years of experience. With real estate as it is today, there are a lot of issues.
The real estate professionals (Investors, Mortgage Brokers, Real Estate Sales People, etc…) that have Over 15 years experience and have made their work in real estate (and are still in business), are the men and women you need as experts to help handle your real estate questions.
There are also some reasonable advice and posts at the link(s) I have put in this post.
Excellent Post! I’ll be coming back soon.
As always there are a few things not mentioned about this “first look” program that should be known and taken into account when making a purchase offer on one of these homes. I recently made a purchase offer on a FM homepath house and quickly learned that the “first look” special offer actually works against an owner/occ. My cash offer was asking price, and up against an offer from a Neighborhood Stabilization Program(NSP). I was at a disadvantage b/c the offer says the selling agent gets $1500.00 if an owner/occ. were to close & they’d get around 3% in closing costs. Great, except that the NSP offer doesn’t warrant these, from what I’ve read, and Fannie prefers not to have to pay these monies out to a true owner/occ. if they also get an offer from a NSP. I was not even asked for a “Best offer” from Fannie. I am a person who wants to buy an old home and renovate it while keeping its original character. I waived the inspection and asked for closing to be asap. What I should have done is offered enough over the asking price to obliterate the NSP offer. The NSP won’t touch homes in the same area that are around $20k. The NSP has 7 renov. homes on the market that haven’t sold since at least last spring, or longer. The NSP rehabbed 2 homes last Oct. and those still aren’t even on the market. Instead of a neighborhood full of ugly vacant houses, they are making it a neighborhood with a few rehabbed empty houses. Middle class owner/occ. paying cash aren’t even considered, b/c if they were, I’d have been asked for a “best offer”. The federally funded programs shouldn’t be placed higher than cash owner/occ., esp. if their rehabs aren’t even selling. Check if the fannie home you want is in an area that has a NSP in place, and structure your offer based on that info.
I know of an investor who is buying first look homes and fraudulently signing the owner occupant affidavits. What are the penalties and, if no one reports her, is there much of a chance that she will get caught?
Tim,
You may report your concerns to the Housing and Urban Development (HUD) Inspector General’s Office. A quick internet search will provide you contacts in your local area. In addition, a formal complaint to your US Senator could lead to a Congressional Inquiry. I highly encourage you to persue this matter. It’s our tax dollars at stake and this program should take care of owner/occupants before investors, that is Fannie Mae’s motto anyway… Hope this helps!