Fred,

Four very important tips for you to know before you make any offers for your buyers.


1. Fannie Mae's addendum states they will NOT pay any customary fees such as the Transfer taxes on the deed, and the Owner's Title policy. However, you can ask for them to pays these fees with your initial offer. If you calculate the exact $ amount for the two fees and ask for that $ amount to be paid towards those two fees specifically, then they may pay them. When worded correctly in the contract, these fees can be paid by Fannie Mae in addition to the 6% buyer's credit without exceed mortgage guideline limits. End result, you get more for you buyer.

2. Make sure your client is working with a broker that knows this program. Although there are many great benefits to it, not all lenders offer all the benefits. Especially in Florida. Example, GMAC and NationStar both offer the program, but they both require FULL condo approval on ALL condos in Florida. Other Lenders may limit the max financing to 95% on primary and 85% on investors. The point being make sure your broker knows their own guidelines and restrictions for this program.

3. Don't let anyone tell you that an FHA loan is better because of price. The 3% down option carries a large price adjustment (which translate to a higher rate). However, since this loan does not carry PMI the overall payment is always less. The lack of PMI combine with the potential tax benefits of the interest paid make HomePath a better option every time.

4. Last but not least, get your buyer pre-approved for a HomePath loan before you submit the offer. The asset managers on these properties are taking HomePath offers above anything else, including cash.

Hope this helps you out. There is a lot more I could share with you, but these are the most common issues I come across.

Thanks for help us eliminate some of this REO inventory.

Thanks, Andrew

It would great to talk with you on Monday - I have a morning appointment, then a Road Trip to Orlando. I will Tweet you or Call you some time mid-afternoon on Monday..

BTW, I looked at the HomePath Website and perused the HomePath Addendum from the Listing Agent of the property that I showed this evening. Some of the features of this program appear really good - no PMI, low down payment, no Appraisal, 6% closing costs, 2 year warranty, and more.

See the Links Below.

Fannie Mae HomePath Addendum:

http://zekerealestate.com/uploads/Fannie_Mae_Real_Estate_Pur…

Instructions from a Listing Agent for a HomePath Addendum:

http://zekerealestate.com/uploads/Fannie_Mae_Addendum_HomePa…

HomePath Home Page

http://www.homepath.com/

HomePath Benefits

http://www.fanniemaehomepathfinancing.com/benefits.html

June 2009 Seminar on HomePath

http://www.abr.org/library/docs/abr/misc/homepath_seminar.pdf


Talk to you next week,
Fred

Fred. I actually have a call scheduled for Monday on these programs with Fannie Mae. I can call you afterward if you like to discuss.

Let me know