Grab a Fannie Mae REO with HomePath Loans
It's great to get some good real estate news for a change. We see opportunities for buyers everywhere we look!
Enter REO: At today's rock bottom prices -- REO or "Real Estate Owned Homes" (i.e., in the bank's portfolio) are the best value going. Fortunately Fannie Mae and VA will fund their own 'acquired homes'. For buyers intending to occupy the home themselves, acquiring fixed rate terms at current rock bottom rates is a fantastic option.
The Challenge: For most folks the home you can afford is the one you can get a loan for! Funding is a big conundrum with most REO's due to their often distressed condition, the quick sale aspect at auction and the mood of the selling bank. If you've tried your hand at closing a Foreclosure or Short Sale you know how much fun that can be. You do need a keen nose to ferret out a solid home beneath the banged doors and tall grass.
The homes are generally sold without an appraisal 'as is'. That there could be problems lurking deeper than the tattered wallpaper. So let's assume you or your buyer are that savvy and your done your homework. You will want a licensed inspector to pass muster first. Funding foreclosures has been the bugaboo because of these deficiencies.
Fannie Mae to the Rescue! Fannie Mae has the advantage of offering the funding via the HomePath Loan program on homes they currently hold in their portfolio. Their trademarked HomePath (r) loans are only available on Fannie Mae REO properties. These loans apply to buyers intending to live in the property, as well as investors who intend to rent or resell. These loans offer great terms, and may include renovation funds, energy improvement incentives or appliance packages. A qualfied borrower may be offered 97% financing and receive assistance toward their closing costs with no mortgage insurance. Investor down payments start at 5% and higher for multi unit homes.
Search REO's on the Fannie Mae site by zip code: http://www.homepath.com
Search the VA REO site: https://va.equator.com/index.cfm
You need not be a Veteran to qualify for a VA REO property purchase loan, although Veterans get first consideration. Investors need some rental experience. You may have to dig around for a HomePath or VA lender as not all banks or brokers are certified in these loans. Not all Conventional Lenders fund the HomePath Loan and not all HUD certified lenders are also VA approved. Find a bank or broker skilled in one or both of these loan products.
Happy shopping!
© 2010 susan templeton
Enter REO: At today's rock bottom prices -- REO or "Real Estate Owned Homes" (i.e., in the bank's portfolio) are the best value going. Fortunately Fannie Mae and VA will fund their own 'acquired homes'. For buyers intending to occupy the home themselves, acquiring fixed rate terms at current rock bottom rates is a fantastic option.
The Challenge: For most folks the home you can afford is the one you can get a loan for! Funding is a big conundrum with most REO's due to their often distressed condition, the quick sale aspect at auction and the mood of the selling bank. If you've tried your hand at closing a Foreclosure or Short Sale you know how much fun that can be. You do need a keen nose to ferret out a solid home beneath the banged doors and tall grass.
The homes are generally sold without an appraisal 'as is'. That there could be problems lurking deeper than the tattered wallpaper. So let's assume you or your buyer are that savvy and your done your homework. You will want a licensed inspector to pass muster first. Funding foreclosures has been the bugaboo because of these deficiencies.
Fannie Mae to the Rescue! Fannie Mae has the advantage of offering the funding via the HomePath Loan program on homes they currently hold in their portfolio. Their trademarked HomePath (r) loans are only available on Fannie Mae REO properties. These loans apply to buyers intending to live in the property, as well as investors who intend to rent or resell. These loans offer great terms, and may include renovation funds, energy improvement incentives or appliance packages. A qualfied borrower may be offered 97% financing and receive assistance toward their closing costs with no mortgage insurance. Investor down payments start at 5% and higher for multi unit homes.
Search REO's on the Fannie Mae site by zip code: http://www.homepath.com
Search the VA REO site: https://va.equator.com/index.cfm
You need not be a Veteran to qualify for a VA REO property purchase loan, although Veterans get first consideration. Investors need some rental experience. You may have to dig around for a HomePath or VA lender as not all banks or brokers are certified in these loans. Not all Conventional Lenders fund the HomePath Loan and not all HUD certified lenders are also VA approved. Find a bank or broker skilled in one or both of these loan products.
Happy shopping!
© 2010 susan templeton