Cash Assist for Buyers of Fannie Mae Foreclosed Homes
Cash at closing program is available for a limited time offer from Federal National Mortgage Association "Fannie Mae" on foreclosed homes. This program is for owner-occupied buyers only and is called First Look. This allows buyers to purchase a foreclosed home owned by Fannie Mae to get a 3.5% of sales price cash contribution paid to the seller at settlement towards the purchase of an owner-occupied home.
For example, a home costing $300,000 will grant the purchaser a $10,500 cash payment from Fannie Mae towards the purchase at closing.
A $500,000 home will give the buyer $21,875.
This credit is not paid directly to the buyer, but is paid at settlement toward purchase price.
Please note this program is NOT available to investors. The purchaser must agree the home will be their primary residence for a minimum period of one year. Buyers must fill out a Certification Form when bidding on a home agreeing to these terms. (Penalties for submitting a fraudulent occupant certification form will result in loss of earnest money deposit and a $10,000 penality.)
"First Look" Program for Owner-Occupied Buyers
Owner-occupied buyers get a "first look" at Fannie Mae foreclosed homes for sale when they initially hit the market. There is a 20-day window of time when only potential owner-occupied buyers can bid on these homes (some states have a longer First Look program). Once this period of time has elapsed, the home can be purchased by any buyer, including investors. However, the cash incentive program is no longer available to other buyers. Buyers will need to quality for the mortgage loan and get prequalified for morgage financing up to a specic dollar limit at current interest rates. The mortgage lender will then likely factor in the 3.5% closing cost incentive in calculating your mortgage application.
Fannie Mae Foreclosed Homes for Sale can be found on the website www.homepath.com. Potential buyers should visit this website to view homes. Please be aware that not all states have Fannie Mae foreclosed homes for sale.
Be aware that you are buying these homes in "as is" condition, meaning no repairs will be provided by Fannie Mae. Homes are in various conditions as they were previously owned. The prices reflect the conditions of the homes and some have been "improved" as evidenced by the Home Depot symbol, or "repaired" by an independent contractor as signified by the hammer symbol next to the pictures on www.homepath.com.
...AVAILABLE FOR A LIMITED TIME ONLY!
Fannie Mae cash incentive program is available for a very limited time.
Home buyers must submit their:
- initial offer to purchase before March 31,2014 and must
- close on the sale by May 31,2014
in order to qualify for the Fannie Mae cash contribution program.
So be sure to contact your real estate professional to assist you through the process and make sure your buying experience is a smooth one!
Contact Gene Mock, Associate Broker, Premier Team, Keller Williams Realty 703-342-8100 to get professional advice on buying your Fannie Mae or Freddie Mac foreclosured home. Gene is an expert in distressed property sales and can guide you through the process. Don't delay, contact Gene today!
Cash Assist for Buyers of Fannie Mae Foreclosed Homes
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