Home Buying in 95608>Question Details

Lakekool, Home Buyer in Carmichael, CA

Wish to purchase vacant land with a garage and fannie mae is asking that I fill out an addendum to say It will be my primary address and occupied?

Asked by Lakekool, Carmichael, CA Mon Sep 10, 2012

How can Fannie Mae ask me to sign this contract when the property is not livable and that in signing it stating it will be occupied with a certificate of occupancy. A $10,000 to seller as liquidated damages along with the deposit. How can the selling agent not submit my offer unless I sign this contract? My current agent seem to go along with this also. Thank you.

Help the community by answering this question:


Fannie Mae will only lend to owner occupied properties. If you want to borrow their money you need to follow their rules. Most lenders also do not lend on land and/or add any value to land as part of their appraisals so any structure on the land such as a mobile home, workshop, garage, ect has to be valued at the overall price of the property. A $50,000 mobile home on a $100,000 piece of land will never pass a lenders appraisal for a loan.
0 votes Thank Flag Link Tue Jan 19, 2016
Lakekool - what kind of financing do you have in place for this purchase?

I'm not aware of any agency lenders that will lend on vacant land, you'd need to go through a portfolio lender and you'd be looking at roughly a 50% down payment....

Or you'd be looking at a regular construction loan, which are also rare, and would require roughly 25% down....

Conventional financing is reserved for completed homes with the expection of inhabiting the home typically within 60 days of purchasing (primary residence)...

Or maybe you're doing all cash?

Please confirm this, and best of luck to you!

Best, Jeff
0 votes Thank Flag Link Sun Aug 4, 2013
You ask how can?

Consumers are frequently surprised that Fannie Mae and other financial institutions are lacking in common sense.

Here is my answer to your "how can?": Fannie Mae and other financial institutions do not possess common sense. If you want to deal with them, you have to expect that.

The listing (or selling) and buyers agents know that that your insistence on using common sense will likely lead to the result of a Fannie Mae clerk or software program rejecting your otherwise fine offer. It is a Dilemma that the seller requires buyers to state something ridiculous to get their offer even looked at.

Stupid Fannie Mae.

Agents would prefer that Fannie Mae not be so dumb, but we also know that jousting at windmillls does not get the job done.
0 votes Thank Flag Link Mon Sep 24, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
This is a common addendum. Fannie Mae wants their home to go to a real home owner as opposed to someone who is buying it for business/flipping or rental purposes. If you want to do business with them, you will have to sign the addendum. If you don't feel comfortable, move on to another home.

Good luck.
0 votes Thank Flag Link Mon Sep 10, 2012
I'm thinking the condition may be part of the FAnnie mae listing on this property?

The Owner occupied condition plays for the first couple of weeks and then the home can be opened to the investor market.

I would suggest you have your buyer's agent contact the listing agent to resolve with the asset manager.
0 votes Thank Flag Link Mon Sep 10, 2012
FNMA is in the business to lend on residential property only.
Once they see an appraisal with vacant land and a nonhabital (assuming) garage, you will not be able to utilize conventional financing.

Somewhere there is a communication disconnect.
0 votes Thank Flag Link Mon Sep 10, 2012
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