Fannie Mae HomePath Buyer Incentive for Oregon Foreclosures
Effective for Oregon HomePath properties where the purchase and sale agreement is signed on or after 01/28/2010, Fannie Mae is offering the following sales initiative:
Oregon Buyers will be offered an incentive of up to 3.5% of the final sales price to be used towards one of the following:
-
Closing Costs
-
The purchase of new Whirlpool appliances by Fannie Mae
-
A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%
To be eligible for the incentive, the following conditions apply:
-
The offer must be accepted on or after 01/28/2010
-
Property sale must close before 05/01/2010
-
Buyer must be an owner-occupant. Second homes are eligible as long as they are owneroccupied (as opposed to second homes where someone is buying a home for someone else to live in: e.g. a parent/child scenario). Investment properties are excluded.
For owner occupied HomePath properties in Oregon, there is currently a 6% seller contribution limit, but those funds can only be used for closing costs. This incentive will allow Oregon buyers some options when negotiating a purchase. The Fannie Mae announcement can be found here: http://www.fanniemae.com/newsreleases/2010/4923.jhtml?p=Media&s=News+Releases
Additional Information
For those of you who are unfamiliar with the FNMA HomePath product: it is special financing for FNMA REO properties. No appraisal is needed and no mortgage insurance is required, regardless of the LTV. Only certain properties are eligible and can be found at http://www.homepath.com. Renovation mortgages are not eligible.
Call me to get started.
Larry Morris is a Certified Mortgage Planning Specialist and Certified Mortgage Coach with Golf Savings Bank in Beaverton, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans and conforming purchase and refinances in the states of Oregon, Washington, Idaho and California.
He can be reached at 503-421-0096, or larry@PDX-Mortgage.com.
I think this is a great program, but I would love to see it go way beyond May 1st, but my question is what happens with these loans 2 years down the road? Are they going to be just like the 100% financed loans from 2007 where a lot of them are going in to foreclosure?
Connie - Thanks for teh comment. It IS a great program and a creative way to get more people into a home. THe program isn't going away, just the special offer from Whirlpool.
As far as the likelyhood of these properties going into foreclosure, that is less of an issue of loan to value, and more an issue of sound underwriting. Statistics show that borrowers with excellant credit don't default as much as borrowers with poor credit, regardless of the loan to value. This program requires a minumum of a 660, which isn't great, but also no where near the 580 we used to be able to do.