Answer, EASY. Get the new program from Fannie Mae which allows normal everyday home buyers to take advantage of a formally REO specific loan program.
Oh, and investors aren't invited to the party.
Don't you hate being a buyer and having to go up against investors with cash offers? I mean really, what chance do you have unless you want to spend way more than the house is worth? Even then, the cash deal is going to win... sorry.
So, here is what Fannie Mae (FNMA) decided to do to level the playing field. Starting tomorrow (Happy Valentines Day all) FNMA will offer some homebuyers a special incentive to purchase through the HomePath program which it uses to market foreclosed properties. This program (albeit strict on eligibility) gives those who qualify up to 3.5% in closing cost assistance. But here is the catch.
- Property must be in one of the 27 eligible states. Here is the ARTICLE that has the list of states approved.
- The house must be in the HomePath's "First Look" period. I've seen conflicting times, but generally speaking it's the first 15 days that the home appears on www.homepath.com website. In Nevada it's 30 days.
- During the "First Look" period only owner occupied offers are intertained. Sorry cash investors... boo-hoo. Here is a brief WRITE-UP on the First Look.
- FNMA says this must be your "initial offer" (nobody seems to know what that means) but most importantly the offer must be submitted between 2/14/14 and 3/31/14. The loan must close no later than 5/31/14.
Frankly, this program is awesome. 5% down, no cost, no PMI... just awesome. So how do you find homes that you can do this program on? Just hit the FNMA HOMEPATH WEBSITE and search for homes. I assume that by tomorrow there will be a plethera of new homes on the site.