Wednesday, October 21, 2009

Fannie Mae and Freddie Mac Offer Incentives to Buy Their Foreclosed Homes and Properties

Fannie Mae and Freddie Mac Offer Incentives to Buy Their Foreclosed Homes and Properties

According to this New York Times article, Help From Fannie and Freddie for Foreclosed Homes, Fannie Mae and Freddie Mac are currently offering fairly attractive incentives for buyers who purchase their foreclosed properties. According to the article, and information gathered from the websites of the Fannie Mae HomePath Financing Program and the and Freddie Mac HomeSteps SmartBuy Program, the incentives are as follows:

Fannie Mae HomePath Financing Program

  • Low down payment (minimum of 3%), which can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
  • Flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
  • Somewhat lenient credit requirements.
  • Available to investors in addition to owner occupants.
  • Loans available without Private Mortgage Insurance.
  • No appraisal fees.
  • Closing cost assistance is is available (if you ask for it) on a property by property basis. There is no cap on the amount of closing cost assistance. According to the article, "the average homeowner has received payments equivalent to 3.75 percent of the loan’s value."
  • HomePath Mortgage financing is available from a fairly large number of lenders. Click here for a list of HomePath Mortgage lenders.
  • Renovation funds are available to complete light renovations through the HomePath Renovation Mortgage. Click here for a list of HomePath Renovation Mortgage lenders.

Freddie Mac HomeSteps SmartBuy Program (for initial offers received by October 30, 2009 and closed by December 31, 2009)

  • Comprehensive 2 year Home Warranty paid for by Freddie Mac.
  • Closing cost assistance up to a 3.5% of the purchase price (must be requested in initial offer).
  • Appliance Discount of up to 30% name brand appliances.

If you are a home buyer in Middle Tennessee who is interested in purchasing a Fannie Mae foreclosure, a Freddie Mac foreclosure, another foreclosure or REO, a short sale, or other distressed real estate in order to get a great home at a low price, please contact me, or visit my website Search the Middle Tennessee MLS - Find Middle TN Short Sales, Pre-foreclosures, Foreclosures & REO's so that you can find foreclosures, short sales and other distressed real estate and homes in Middle TN. I help home buyers in Rutherford County TN, Williamson County TN, Davidson County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN and Belle Meade TN.

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