CA Mortgage News- Fannie Mae incentives for Buyers

Southern California buyers please take note that there are still programs and incentives that are offered right now.  Fannie Mae is offering awesome incentives for home buyers, if you can get into the home of your dreams with virtually free appliances why wouldn’t you?  There are programs available for home buyers, take advantage of what the government and housing programs are offering you.  Remember the New buyers tax credit is going away in April unless we can get the government to extend it, so take advantage now!

In a recent report from Fannie Mae and HomePath

Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing Fannie Mae properties that are closed within this period may receive up to 3.5% of the final sales price for:

• Closing costs;
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

Neighborhood Stabilization Program (NSP)
Currently, some local housing authorities and housing non-profits have programs for homebuyers that use HUD’s Neighborhood Stabilization Program funds.

Fannie Mae supports NSP and offers some concessions to streamline the purchase of Fannie Mae properties for buyers using NSP funds. This includes:

• Deposit Waivers – Fannie Mae will waive the earnest money/deposit requirement for public entities using public funds to purchase a Fannie Mae-owned property. Individual homebuyers using public funds to purchase a Fannie Mae-owned property do not have to meet the full 5% earnest money/deposit requirement. Deposits can be as low as $500.
• Reserved Contract Period – Upon receipt of an acceptable offer, buyers have the ability to renegotiate their offer after obtaining an NSP-required appraisal.
• Extra Time for Closing – Buyer receives up to 45 days to close, 15 days more than is usually permitted for purchases of Fannie Mae-owned properties.

What does this mean for California?  This could help raise the market and local neighborhoods.  Fannie Mae foreclosed homes are typically better off then average foreclosed homes that have vagrants or damage to the property.  Fannie Mae has a fund designed for making their foreclosures habitable.  Anyone who has been shopping foreclosures knows the drawback to these deals is the amount of re-habilitation needed.  This makes it difficult for home buyers who are looking for a deal, find the foreclosure and then realize that they need to have $15,000 in cash for repairs.  As a buyer you can’t rely on investors picking up these properties and fixing it up and selling again for a deal, you will find that the investors have put in $10,000 and added a $30,000 mark up.  These people are in it for profit.  I have worked with investors before who flipped short sales and this is typical for them.  If you are looking to buy a foreclosure you have to weigh all the options and information.  If you are a home buyer I would say your best bet is with the Fannie Mae program especially since as reported in my January 31^st article Fannie Mae has the First Look program for buyers.  If you are looking to buy in the Inland Empire contact me and I will point you in the right direction or help you myself.