Lehigh Valley Foreclosures & Buying Foreclosed/Bank Owned Homes – Financing Options BETTER than FHA – No Mortgage Insurance, No Appraisal, 3% down!
The HomePath Mortgage Program for Fannie Mae Bank Owned Homes – The Basic Details (other qualifications may apply) Today 10-7-2010 (only Lehigh & Northampton Counties) there are 259 Foreclosured Homes Listed and are either Available, Pending or under agreement right now. OF THOSE – Fannie Mae Owned = 77 ranging from 24,900 to 730,000.00
FACT: Foreclosures are one of the best ways right now to purchase a home and gain instant equity.
FACT: Banks need to sell their inventory because there is more to come for the next 2 to 3 years.
Program Requirements & Benefits – THE QUICK FACTS of the Standard Program NOT THE REHAB program
1) This program is ONLY available to purchase Fannie Mae REO (Real Estate Owned) Foreclosured Properties. But, there are plenty of them.
2) You can see all of these properties available Here: www.homepath.com – I can show you any of these properties located in the Lehigh Valley Area. (Lehigh & Northampton Counties)
3) There is NO appraisal which saves you 450 to 575.00 out of pocket cash within the first 7 days of your offer getting accepted.
4) If you have a credit score of 660 or higher you only need to put 3% down!
6) If you have a credit score of 620 to 659 you will need to put down 20%.
7) Primary Residence – Owner Occupied Homes (no investors basically) you can get up to 6% seller’s assist!
8) Investors can get 2% Seller’s Assist
9) The Buyer will be responsible for 2% PA Transfer Tax – Typically it is 1% to Buyer and 1% to 1% to seller – for this loan you “the buyer” pays both sides. This is 2% of the purchase price – 100,000.00 property 2000.00 transfer tax to be paid.
10) If the Buyer is only putting down 3% then they will also need to show they have 2 Months of Loan Payments including property taxes and homeowner insurance payments in their bank account at settlement – This money can be a gift from a family member. This is known as 2 months reserve…just incase something happens like a job loss and injury..the bank sees that you can still cover 2 months in payments.
Owner Occupied VS Investor Rules for Making offers on a Fannie Mae Foreclosure/REO
(so, the key is to know soon as the property hits the market and don’t wait to make your offer) Again…Take a look at my Lehigh Valley MLS Search. Nothing is hidden from you and we work as a TEAM.
1st Look Program – Basically, if you go to www.homepath.com and the property is marked with the “First Look” label…this means that the home has just hit the market and the following rules apply.
The banks would prefer to sell foreclosed properties to Occupied homeowners…WHY? Good question.
Because people who owner there homes take better care of their homes! PERIOD. If the home goes back to a foreclosure in the future…there is a better chance that the home will be in better condition because tenants and investors on average don’t take care of the property like a First Time Home Buyer.
1) The home MUST be on the Market for 4 days BEFORE the bank will even look at offers. You can make an offer and post date it but, it will be held and submitted on the 5th day.
2) ONLY owner occupied Buyers will be allowed to submit offers during the first 15 days on the Market.
3) Investors will be allowed to submit offers on the 16th Day.
Finally, How can you get this loan? Local in the Lehigh Valley Area. The only player right now is Wells Fargo. I know my blogs always talk about Wells Fargo – But, they are the ones who are stepping up to the plate to help people in all areas of these special Government incentives. Both National and local.
PS: There are programs available through HomePath for investors also. But, this Blog is focused on Residential Owner Occupied Homeowners.
PSS: Here is another reason that your first step should be meeting with a Real Estate Agent that is Foreclosure and Short Sale Certified. They are the ones who can make sure you get the best deal with the best financing options. Depending on who you talk to will depend on your end results.
Let me walk you through it, One Step at a Time.