Fannie Mae offers incentive for Home Path Properties in Arizona and California

If you or someone you know may be looking to get pre qualified for a new home loan in Arizona or California - please feel free to contact me for a no cost, pressure free review of your home buying potential.   You may reach me at Craig Turley or 480 385 1422.


Great incentive for Fannie Mae foreclosed properties.  Certain terms and restrictions apply.

(source Fannie Mae)

Fannie Mae Announces Homebuyer Incentive up to 3.5 Percent Closing Cost Assistance on HomePath Properties in the FirstLook Period

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that homebuyers may receive up to 3.5 percent in closing cost assistance when they purchase a HomePath® property in 27 states during the FirstLookTM period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors. Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days. 

“This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, Vice President of REO Sales.  “Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.” 

To be eligible for the incentive, the initial offer must be submitted between February 14, 2014 and March 31, 2014, and close on or before May 31, 2014. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option. 

Prospective buyers can search for properties and easily identify how many days remain on a property’s FirstLook period by visiting www.HomePath.com. Each qualifying property will be identified by the sales incentive icon. HomePath properties offer buyers a wide selection of options, including single-family homes, condominiums, and town houses. For more details on the program, visit www.HomePath.com. 

Until Next Time,

Craig Turley

Condominiums and Mortgages

As if qualifying for a mortgage these days was not tough enough with stricter underwriting standards and documentation requirements.  Try qualifying for a condominium refinance or purchase of an existing condominium.  The standards are more difficult because not only do you, the borrower, need to qualify - the association must qualify as well to secure many loan programs.

So how do you know if the condominium you currently own or the condominium you have fallen in love with qualifies?

Let's take a peak at some general terms and guidelines:  (Keep in mind, this is a general overview and will vary based on lender, state, etc)

What is a warrantable condominium?

The term “warrantable” refers to a condominium complex with features that lenders view as favorable in minimizing their risk exposure. Lenders view warrantable features protect a complex from future hazards which pose risk, threatening value of the units. Warrantability refers to the condominium complex as a whole, not the individual units.

Features of a warrantable condominium:

• Most of the units are owner occupied (not rental units)
• On established and existing projects, at least 90% of the units must be sold
• For new and currently converted construction, 70% of the units must be pre-sold (closed or under contract)
• No more than 10% of a project can be owned by a single entity.
• No more than 20% of the project can consist of non-residential space.
• 15% or less of the units can be 30 days delinquent on HOA dues
• The Homeowners Association must have at least 10% of its budgeted income designated for replacement reserves

Other requirements do exist, however, the above conditions are generally deemed the most important to Fannie Mae and Freddie Mac. Also, each lender will have their own overlays related to condominium financing, thus, additional restrictions may apply.

So, how do you know up front if the condominium in question for financing is warrantable?

• Check with the property management company or the real estate listing agent to confirm the complex is warrantable.
• Check the eFannie website to determine if the complex meets project standards. (here)
• Have your lender, who pre qualified you for the mortgage, provide your Realtor with a condo certification form to be filled out by the condominium association/property manager. There may be a small fee for this request, but better to find out early on in the process, than after an appraisal fee, home inspection fee and invested time.

Keep in mind, just because your condominium may not be "warrantable" it does not mean you cannot find financing. There are niche lenders who are happy to finance "non warrantable" condominiums - however, much of the time, these lenders will require a bigger down payment and probably a higher interest rate.

For FHA and VA condo project approvals you can search here:

FHA Approved Condo List

VA Approved Condo List

My recommendation - whether selling a condo, buying, or refinancing - do your due diligence up front, hopefully averting disaster later in the process.

Until Next Time,

Craig Turley

Craig Turley is a mortgage and finance consultant.  He has over 19 years professional business, finance, and management experience as an entrepreneur and corporate executive.  Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance.   You may contact Craig via email or directly at 480-385-1422 for any Arizona and California mortgage questions.

 

5 Reads from the Weekend

The Fourth of July weekend brought us fun, sun (especially in Arizona), and some time to catch up on some reading.

My five favorites from the weekend:

1.)  The Joy of Old Age. (No Kidding) - NY Times by Oliver Sacks.
2.)  The follow up from an ESPN Outside the Lines story of two Cleveland high school wrestlers, Dartaynon Crockett & Leroy Sutton, and the bond created with the producer of the original story, Lisa Fenn.  Video and article.
3.)  "Deal of the Day" from Randall Reinwasser of Solitude Canyon Investment Advisors.  Free T-shirt!!
4.)  From popular blogger and author James Altucher, Have an Adventure Today.
5.)  Mortgage markets rocked negatively on July 5, 2013.  What's really behind the job numbers?  NY Times - Jobs Data is Strong, But Not That Strong, Easing Fed Fears.  We'll see.

Until Next Time,

Craig Turley

NMLS #80917

CA-DOC 80917

AZ LO #0920382

Craig Turley is a mortgage and finance consultant.  He has over 19 years professional business, finance, and management experience as an entrepreneur and corporate executive.  Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance.