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| More Government Loan Assistance |
| Fannie Mae Announces 3.5% Seller Assistance Fannie Mae is offering up to 3.5% of the final sales price of the house to buyers. The money can be used to purchase new appliances or as money towards the closing costs. This is one more strategy the Federal Government is using to stem the decline in the housing market. Attracting qualified buyers into the housing market is good for the economy. Homebuyers have to act quickly to take advantage of this program. To be eligible for this incentive, the following must be met.
Some of the Fannie Mae owned properties can be bought with as little as 3% downpayment. Many families are already taking advantage of the federal government homebuyer tax credit. This credit is $8,000 for first time buyers and extends to April 30, 2010, with a 60 day cushion for closing. If you are an existing homeowner, and have lived in the house for at least 5 years, and would like to relocate, the credit is $6,500. Readers of this article also enjoyed: ARMs To Reset: More Defaults... Fannie Mae Sets Timeframe For Foreclosures |
| HAMP requests proof of income upfront: This disqualifies lots of borrowers An amendment to HAMP will require borrowers to provide income documentation upfront. The program change is effective for all HAMP trial period plans with effective dates on or after June 1, 2010. The mortgage loan servicers will have to verify the documents before the borrower can be offered a trial period plan. The initial package includes:
The RMA form details the proof of hardship, and the borrowers financial information, specifically their assets and liabilities. Examples of the hardship could be the loss of a job, reduced income due to a shorter work week, and chronic illness. The IRS forms are transcipts of the tax returns. This is legal and acceptable proof of income. The evidence of income includes paystubs, bank accounts (direct deposit), or pay statements. Within 10 business days of getting this information, the mortgage servicer will acknowledge in writing that the borrower is participating in HAMP. And within 30 days the servicer will review the documents. At this point a decision is made regarding the borrower. There is acceptance, a decline, or the file is incomplete. The borrower needs to give the servicer additional information. More than 100 mortgage servicers have already signed on to the program. This covers about 90% of the mortgages. |
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| Fannie Mae Wants To Sell You A House: Let's Make A Deal Fannie Mae has a large inventory of single-family houses to sell. At the end of the second quarter, Fannie owned over 129,000 houses. Fannie will make every effort to get rid of this inventory of houses. It will renew the program that offered 3.5% of the final sales price to the homebuyer. This money can be used to help with closing costs. It will also be offering a bonus of $1,500 to seller agents who sell owner occupied properties. Realtors must act quickly because the offer starts September 23rd and the transaction must close by December 31, 2010. Fannie is betting that the sale of this inventory will stabilize neighborhoods. The amount paid to realtors could be significant. For example, selling 65,000 units and paying the realtors a bonus will mean an expenditure of $97.5 million. Payment of the 3,5% premium to homebuyers can add another $341 million if the average selling price were $150,000. Is it worth it? To find out more about Fannie Mae houses you have to contact HomePath. Readers of this article also enjoyed; How To Cancel Private Mortgage Insurance When To Get A Second Mortgage |
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