The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com
So what’s the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.
There are more incentives. The government’s current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there’s a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:
- $8,000 tax credit for first-time homebuyers
- $6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence
- Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.
What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. “Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.”
Home inspections. Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.
No contingencies. If your home is on the market and you’re shopping for a new one but need to close on your primary residence, Fannie Mae isn’t the way to go. “Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.”
Get prequalified. This is really important for a lot of reasons regardless of whether you’re buying a home owned by Fannie Mae. There are more restrictions these days when it comes to getting home loans. So, knowing that you’re prequalified to purchase a home at a specific price will make shopping for the home that fits your budget easier. But Fannie Mae cautions, “A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.”
Making an offer. Just as with most real estate transactions, making an offer on a home requires a lot of research. Your real estate agent can get you vital information and when you’re ready, the offer is submitted via your agent. “Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.” Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting.
Valerie Fitzgerald specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of the book published by Simon and Schuster Heart and Sold: How to Survive and Build a Recession-Proof Business. Buy it here.
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