Freddie Mac's Plan Helps Owner Occupant Homeowners
Homeowners have 15 days to secure a home before investor's can bid
Here's a blurb from FreddieMac's website about eligibility and a bit about the process:
First Look Eligibility and Identification
- During the first 15 days (30 days in Nevada), a home is listed for sale in the Multiple Listing Service ("MLS"), HomeSteps will consider purchase offers from owner-occupants, second home purchasers, public entities or their designated partners. Buyers intending to purchase the property for investment or similar purposes may submit offers to the listing broker and HomeSteps will consider them after the initial 15 listing days have expired.
Eligible Homes
- All listed HomeSteps homes are eligible for inclusion in the First Look Initiative.
- Agents may contact the HomeSteps listing broker with questions regarding the eligibility of a home; this information will also be included in MLS home listing information.
15-Day Window for Offers
- Buyers must have their broker check the MLS or contact the listing broker to determine how many days are left under the First Look.
Affidavit of Owner Occupancy
- The buyer and their selling agent must sign an affidavit affirming that the buyer will occupy the home as their residence. Parties that fraudulently sign the affidavit may be subject to criminal or civil liability.
Probably one of the most interesting points to note is that Freddie Mac's First Look Initiative is now not only for people looking for primary residences, but open to people who are looking for second homes!!
Also, Freddie Mac Home Step homes come complete with a termite inspection and a two-year limited warranty!! In some cases Freddie Mac will also agree to pay up to 3.5% of your closing costs!! Wow.
Bottom line - if you see any of these homes on the market you are likely to get a great deal with great protection to cover your new asset.
Here's a story...
I recently helped a client purchase a Freddie Mac Home Step home throught the First Look Initiative. He was able to secure a property at a price way below the neighborhood comps, that was clean and livable. It only needed a few minor cosmetic adjustments (new carpet, new paint, etc.). Not to mention Freddie Mac agreed to pay up to 3.5% in closing costs, title expenses, and a 2-yr warranty. Needless to say he got a good deal.
Let me know if you need my help with finding a deal like this!
Clay
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