Freddie Mac HomeSteps® vs. Fannie Mae HomePath®
Incentives to Buy Foreclosed Properties
Effective January 1, 2011
•· Minimum sales price $25,000
•· Single Family Owner-Occupied Only - Homes bought at auction; Commercial, Investment, & Second Homes are not eligible
•· 2 year HomeProtect Home Warranty
•· Up to 30% discount on new Appliances
•· No special financing offered
•· Concessions may be negotiable for Buyer's Closing Costs
Fannie HomePath®
•· First 15 days the home has been posted for sale
•o Only Owner-Occupied Buyers can bid
•o HUD's Neighborhood Stabilization Program Incentives
•o No investor bids during first 15 days listed
•· Neighborhood Stabilization Program - Special Incentives
http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/
•o $500 earnest money
•o Right to re-negotiate sales price if appraisal is lower than sales price
•· HomePath® Mortgage Financing Terms
•o 3% down payment - can be funded by loan of local non-profit Please note this guideline is lender specific and prepare your borrowers for 5% as worst case
•o No PMI
•o No appraisal fees
•o Lower credit scores considered Once again remember that conventional guidelines require higher credit scores, GET THE LOAN PREAPPROVED.
•o Fixed, Adjustable
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