There have been many articles written recently regarding the looming tax credit deadline for first-time home buyers. A real debate has been raging ... should or shouldn't the tax credit be extended?
In the meantime while the pros and cons of this are being debated, I'm experiencing a great number of phone calls asking ... "Can I still take advantage of this credit"? And ... "Do I still have time to get a deal closed before the cut-off date"? As the clock ticks down on this program, it is getting harder and harder to answer in the affirmative. Closings are hard to guarantee and time is terribly short now. I hate having to tell a young first-time buyer that they may have missed their opportunity. It's sure not easy telling a referral partner that message either.
It's why I was almost giddy when I learned about a new loan product being added to the program menu at our company through Fannie Mae. This new program is exclusive to Fannie Mae Foreclosed Properties. No one needs to tell you, there is currently a virtual backlog of home inventory being held by this mortgage giant.
In order to improve the housing market, this inventory needs to be moved. To address this problem, Fannie Mae has now developed and will provide an unique financing opportunity for these properties through qualified, program participating lenders.
Some of the Highlights/Unique Advantages of this new program are:
1. 5% DOWN CONVENTIONAL FINANCING with lower than typically allowed Credit Scores
2. INVESTORS allowed (Non-Owner Occupied) with 15% Down Payment
3. NO MORTGAGE INSURANCE Required
4. NO APPRAISAL Required
How does this fit? How does it help everyone's cause? Buyers looking to enter the market at low prices tend to search for distressed properties, like foreclosures and short sales. Pitfalls are encountered by these buyers 
when the property is appraised or mortgage insurance is denied.
NEITHER of these issues is a concern with this new product. NEITHER an appraisal or mortgage insurance is needed.
Take these two major issues out of the underwriting/processing/closing mix ... and you have a much better chance at getting a loan closed before the deadline of November 30th!
This new program has been delivering new life into the agencies that I work with. Agents are seeing real potential for immediate assistance for their customers ... and their personal businesses with this dynamite new program.
The wheels of change have been a long time coming, but with the advent of this new HomePath loan ... there is finally some hope of improving some of the frustrating circumstances presently before us.
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