Are you thinking of buying an investment property?
We’ve been hoping that Fannie Mae might be holding back some REOs until the new program opened:
Buy a Fannie Mae-owned house, and get up to 3.5% credit towards closing costs through Oct., 2011.
Here is a list of Fannie-owned SFRs on the outskirts of NSDCC (Oceanside, Poway, RP, RB, etc.):
Favorites on the list include: Carlota, Carmel, Del Diablo, Via Cajita, Warmlands, and Woodshadow.
Only a handful on the list are active listings. Because the good ones tend to sell quickly, I wanted to give you time to evaluate before they hit the open market – most aren’t listed yet. There’s no telling exactly when they’ll hit the market, or for how much.
But we know they’ll probably be eligible for HomePath financing – here are the terms:
- Minimum Down Payment is 3%.
- Investor’s minimum down payment is 10% down.
- 2-unit properties require 20% down regardless of occupancy.
- 3-4 units require 25% down regardless of occupancy.
- An appraisal is not required.
- Regardless of down payment, mortgage insurance is not required.
- Most closings can occur within 30 days.
- The interest rate is usually .375% higher than market.
- The payment on a HomePath Mortgage will always be lower than an FHA payment.
- Condos in Arizona, California, Florida, Michigan and Nevada are not eligible.
- Minimum credit score is 660 unless the down payment is 20% then the minimum score is 620.
- The minimum loan amount is $50,000. The maximum loan amount is $417,000.
- The seller can pay up to 6% of the sales price towards buyers closing costs, regardless of LTV.
HomePath Renovation Mortgages:
- Minimum Down Payment is 3% but the fees to do this will exceed 2% of the loan amount.
- The sales price on the contract should not include the cost of repairs.
- A list of required repairs will not be provided.
- The borrower must rely on their inspection.
- Sweat equity is not allowed.
- Borrowers must hire one credible General Contractor to bid the entire project.
- Multiple bids are not allowed. The General Contractor must attend closing.
- The repairs are completed after closing.
- The minimum down payment for investors is 15%.
- 2-unit properties require 25% down regardless of occupancy.
- 3-4 unit properties require 30% down regardless of occupancy.
- Condominiums, manufactured housing and co ops are not eligible.
- Renovation funds can be used for cosmetic renovations.
- The bid must include all required repairs necessary to bring the house up to average condition.
- Barns and pools cannot be added.
- $35,000 is the maximum the borrower can escrow, but additional repair costs can be paid in cash.
If we catch a lull in the market, there could be an excess of Fannie Mae listings laying around.