Fannie Mae wants to give you some money...
I'm telling you...I wish I was a first time buyer all over again! Don't take me wrong...I love my home and we're very happy here. But the thought of having a seller pay for my appliances and some of my closing costs as an incentive for me to buy a house is very tempting. It certainly wasn't this way when I bought mine. Houses weren't this low in price and my rate was 8.5% even with outstanding Fico scores and 20% down payement.
Homes are as affortable as ever, rates are super low and now Fannie wants to give you money? What else? OK, we do have to deal with short sales and difficult banks to work with but...come on...we don't live in a perfect world, do we? Let's make the best of what we have.
Yes...Lending guidelines are very tight and it hasn't been easy for a lot of buyers to get approved. But thighter guidelines are good news too and will protect the consumer "from themselves". Now only who can actually afford to buy will be able to do so. I don't have any problems with that, do you?
Fannie Mae is giving 3.5% credit to any buyer who purchases one of their homes between January 28th and April 30th. One important fact here....The property HAS TO BE owned by Fannie Mae.
The 3.5% credit can be used to pay for new appliances, closings costs or a mix of both.
Offers must be accepted on or after January 28th and the transaction must be closed by May 1st.
No investors allowed.
Even though you don't have to choose a Home Path Loan, it's important to note that lenders do not allow seller credits towards anything BUT closing costs (ie. repairs, applianced, etc). So depending on the type of loan your choose (conventional, FHA, VA, etc) there's a chance that the bank won't allow you to use the credit towards appliances and you may have to stick with Fannie Mae's Home Path loan program as your financing option.
With FHA seller credit soon being capped at 3%, this can be of help for some buyers.
So make sure you're working with a knowledgeable mortgage professional that will show you different home loan scenarios and explain every detail of your loan in order to avoid any unwanted surprises!
Originally posted at MySacramentoMortgage.com
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