- Dennis Norman
Fannie Mae just announced their new “First Look” initiative which is aimed at supporting neighborhood stabilization and promoting home purchases by owner occupants by providing owner occupants an advantage in purchasing Fannie-Mae-owned foreclosed properties.
Under the First Look program only offers from owner occupants and buyers using public funds are considered during the first 15 days a property is on the market. Offers from investors will be considered only after the first 15 days have passed.
In addition to First Look, buyers using Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program, HOME Investment Partnerships Program funds from HUD, local housing trust funds, or charitable foundation funds may also qualify for the following benefits:
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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 who have qualified for public funds and want to purchase a Fannie Mae-owned property do not have to meet the usual earnest money/deposit requirement. Deposits for these buyers can be as low as $500.
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Reserved Contract Period – Upon receipt of an acceptable offer, buyers have the ability to renegotiate their offer after obtaining an NSP-required appraisal.
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Extra Time for Closing – Buyers receive up to 45 days to close — 15 days more than is usually permitted for purchases of Fannie Mae-owned properties.
Diana,
I’m an not an attorney and this is not legal advice, but from a practical standpoint, I would think that whatever home you and your family spend 50% or more of your time at, have your cars registered at, use as a mailing address, etc, would be your primary residence….From what you described it doesn’t sound like this would qualify…I would suggest to describe your living situation in writing to the seller (Fannie Mae) and let them decide if you meet their requirement or not….Dennis
We made an offer on a homepath first look property with 10% down on the advice of our broker because I live in the state with the property, but my husband telecommutes, and his company is in another state. He lives there some of the time, and here some of the time, so we were told this must be our second home. The Fannie Mae website says “owner occupied” for eligibility, but our counter offer that we must answer today says it must be our “primary residence.” Are we eligible? How should we answer?