Incentive extended to lure buyers to distressed Fannie Mae properties...

In an effort to reduce their distressed property inventory Fannie Mae announced today that it will be extending its buyer incentive program. The program offers a 3.5% rebate to those who purchase and close on a Fannie Mae owned home by June 30th. The rebate may be used toward the closing costs of the transaction, select Whirlpool appliances or a combination of the two. The program which was launched this past January was designed to help spur the sale of distressed properties reacquired by Fannie Mae. The program is offered to both first time and move up home buyers who will need to be owner occupants to qualify.
In the Bend there are currently 25 homes listed by Fannie Mae for sale, with more to come. Prices on these homes range from $39,900 to $355,000. Many of these homes will also qualify for HomePath mortgage financing or renovation financing. The HomePath mortgage program allows for down payments as low as 3 without having to incur mortgage insurance. You may use gifts, grants, loans from employers, the government or non profits to fund your down payment. Offered with reduced credit guidelines both owner occupied and investors may qualify for the mortgages but only owner occupied homes will qualify for the purchase incentive program. Fixed rate, adjustable rate and interest only loans are available through the mortgage program. Mortgage financing which includes funds for light renovation is available with the same guidelines and benefits to those properties which will be owner occupied.

This is a great opportunity if the program fits your needs and you do not procrastinate on selecting a home.

Time to get off the Fence, Sunset is coming….

The April 30 deadline for selecting a home and having it under contract is just weeks away. The National Association of Realtors has been in extensive discussions with Congress to gain an additional extension of the tax credit. Today the association announced that it is not likely to occur. The tax credit deadline combined with this week’s news that funding for the USDA Rural Housing Programs will run dry at about the same time and the Federal Reserve will no longer buy Fannie Mae and Freddie Mac mortgage backed securities signal it’s time to get off the fence and buy one of today’s bargains.


For many the tax credit program when combined with the USDA program can make all the difference in the world. Waiting for the perfect property or for the bottom of the market might prevent many from realizing their homeownership dream. For the rest of us fence sitting can prove equally damaging. Waiting, waiting, waiting, and then bam next thing you know it interest rates have risen and you can afford less house than before. By waiting you may have a slightly better price on the house but that added interest has moved you just out of the range of affordability.

If you are waiting on the fence do not fall prey, programs will be ending and interest rates will be rising. The programs have been fantastic, prices and interest rates are at historic lows, do not miss out the party is about to end.