Posts Tagged Homepath

Fannie Mae Announces 3.5% Buyer Assistance on REO Properties

By Carrie Bay, – Fannie Mae announced Monday that borrowers purchasing a Fannie Mae-owned property through HomePath, the GSE’s REO disposition operation, will receive up to 3.5 percent in closing cost assistance. The company has implemented this temporary buyer assistance program fairly regularly since the beginning of last year — a strategy aimed at helping the GSE unload a bloated supply of repossessed homes. Fannie Mae acquired 262,078 single-family REO properties through foreclosure in 2010, compared with 145,617 in 2009. Read more below.

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9 Biggest Real Estate Mistakes

This is a good article from Ilyce Glink, author of Buy, Close, Move In! about buying a home in today’s changed marketplace and avoiding the most common mistakes. In it Glink talks about getting pre-approved before going house shopping, getting your credit cleaned-up before getting pre-approved and buying short sales and HUD homes.

I haven’t read the book yet, but this article has some very sound advice and I recommend reading it thoroughly. With more HUD and HomePath homes popping-up in Salt Lake City and throughout Utah, it’s a good time to take advantage of buying a great home at a very affordable price.

With real estate rules, laws, and fees changing daily, it’s easy to make a mistake when shopping for a home or a loan. Here are some of the most common mistakes buyers are making in the new housing market — and some tips on how you can avoid following suit.

1. Not Understanding the New Rules

What’s changed in real estate? The details. While you still go out and shop for a home, make an offer, find financing and close on the property, the details of how this process works today are vastly different from the way we went about buying real estate five, 10, or 20 years ago.

If you attempt to wade in without familiarizing yourself with the new way of doing business, you’ll find yourself blocked at almost every turn. Finding good partners (see below) can help, but you have to be prepared to provide more information and evaluate more factors in order to close successfully on a new home.

2. Failing to Build a Top Real Estate Team

If you buy and sell property for a living, you know that it’s a team sport. Even if you’re a real estate agent, you’ll still need a good lender, inspector, title or escrow company, and attorney to assist you in completing this purchase successfully.

But some buyers think they can do it on their own. In today’s new real estate world, that’s a mistake. For example, even in states where real estate attorneys aren’t generally used to close house deals, using an attorney to help you negotiate a foreclosure or short-sale purchase can mean the difference between closing and sitting in limbo. Real estate agents who intimately know the foreclosure market or have colleagues who represent real estate owned properties for banks and other financial institutions can help you find the right property faster. Get on their short list as an investor with cash to spend and they’ll give you extra time and attention.

Taking the time to build a great real estate team will pay off in spades. Not putting this team together ahead of time is a mistake you don’t want to make.

3. Not Responding to Your Lender’s Requests

Lenders have tightened up credit requirements and are taking the time to verify every piece of information you submit. In fact, when you apply for a mortgage today, you should expect to provide reams of documentation both with your application and during the verification process.

It’s quite likely that some of your information will disappear during the process, and you’ll be asked to replace various documents or augment your documentation. When these requests come in, you should take them seriously and respond quickly. If you don’t, you could be putting your financing in jeopardy.

4. Not Cleaning Up Your Credit in Advance

One of the ways lenders are tightening credit requirements is by raising the minimum credit score necessary to be approved for a mortgage. Prior to the credit crisis, lenders might have charged one interest rate if you had a 680 credit score — today you might need a credit score of 720 to get the same rate. When it comes to government-backed loans, FHA originally didn’t have a minimum acceptable credit score limit, but it has now instituted tougher standards that require a credit score floor of at least 600 in order to get a loan.

That’s why is extremely important that you spend time cleaning up your credit history and score before you apply for a loan.

Read the rest of the article here.


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Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties in Utah

Big news from Fannie Mae last week.  Fannie Mae will pay the closing costs on any Fannie Mae REO (Real Estate Owned, or in short, foreclosed homes owned by Fannie Mae) through May 1, 2010.  Below is the official news release from Fannie Mae:

January 28, 2010
Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® PropertiesIncentive Part of Ongoing Effort to Stabilize Neighborhoods WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on before May 1, 2010.

“Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help,” said Terry Edwards, Executive Vice President of Credit Portfolio Management. “Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home.”

Properties eligible for this incentive are listed on and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Here is a link to Fannie Mae’s Homepath website as well as their FAQ’s about buying a home through Homepath. by Fannie Mae

As always, be sure to have your ducks in order and be pre-approved for your loan before you start shopping for a home.  Your purchasing position will be much stronger and with home like this, time is of the essence and being pre-approved gets the hard stuff out of the way up-front.

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