Fannie Mae stands for the Federal National Mortgage Association, and is a federally-charted corporation that purchases home mortgages. As part of the Fannie Mae Incentive Plan, Fannie Mae is offering Buyers up to 3.5% in closing cost assistance and not only does the buyer reap the benefits, but their selling agents receive a bonus of $1,500.00 bonus.
These incentives are valid only for HomePath properties closing by December 31, 2010. All interested buyers should review the qualifications and terms and conditions to make sure you qualify.
In early 2009 Fannie Mae launched its HomePath Mortgage Financing program. Some of the great benefits of the program are low down payments (at least 3%), with no mortgage insurance or appraisal.
An alternative for those properties that need a little fixing up is the HomePath Renovation Mortgage Financing program. This program allows you to not only finance your purchase, but light renovations as well.
More than 87,000 buyers have purchased HomePath properties nationwide. These are great opportunities for those who have looked to purchase properties in Hawaii, but either don’t readily have a traditional 20% down or don’t want to part with their savings in this time of economic uncertainty.
So now that I’ve gotten your attention, you are probably asking why Fannie Mae is offering these incentives? The foreclosure crisis is still steam rolling through the real estate market nationwide, and Hawaii has been no exception. The bottom line is that Fannie May wants to unload the thousands of foreclosed properties with which it is stuck with due to this crisis situation. Fannie Mae took back 68,838 foreclosed properties in the second quarter alone in addition to the 61,929 new REOs it took into its inventory in the first quarter of 2010. Since June 2010 Fannie Mae has been holding 129,310 single family REO properties.
In comparison to all the foreclosures nationwide, not just Fannie Mae properties, RealtyTrac (a foreclosure authority) reported 1.2 million foreclosures this year vs. 1 million in 2009. Economists are saying that approximately 2 million homes will be seized by lenders through 2011. To bring these numbers in context, 2005 only saw 100,000 foreclosures for the entire year.
The Fannie Mae HomePath incentive program is a positive step in Fannie Mae’s efforts to stimulate its sales of its foreclosed inventory, and get these properties and the costs associated with them off their books.
The Fannie Mae HomePath incentive and financing programs are “win win” offerings. For more information on how to take advantage of these great opportunities, contact me.
Comments(0)