Wednesday, April 30, 2014

Fannie Mae to Help Cover Mortgage Closing Costs

Fannie Mae is offering more incentive to owner occupants, that is non-investor purchasers of new homes, by helping to cover the closing costs in some states.
The offer is only available to FirstLook homes. That's Fannie's program where homebuyers get to buy homes without competition from investors.
The home can be purchased via Fannie Mae's HomePath website which features foreclosed homes from the portfolio of the government-sponsored enterprise.
Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days.
“This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, Vice President of REO Sales. “Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.”
Homebuyers need to get their offers in by March 31, 2014, and close before June.
The incentive will offer qualified buyers up to 3.5% of the final sales price to pay closing costs.
"In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time," explains a statement for Fannie Mae. "Buyers can work with the lender of their choice to determine if this is an option."

Thursday, April 24, 2014

Little-Known Program Helps Local Couple Buy Fixer-Upper

FHA 203K: The standard FHA 203k loan is used to purchase or refinance a home that needs major rehabilitation, or when the repairs are structural in nature. The standard 203k loan is also used when the total renovation costs exceed the $35,000 limit of the 203k streamline loan.