Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
Friday, January 29, 2010
Tuesday, January 19, 2010
HUD takes action to speed resale of foreclosed properties
WASHINGTON ? Jan. 18, 2010 ? In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance to allow for a quicker resale of foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales.
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
Monday, January 11, 2010
Single women outnumber single men when buying a home
CHAPEL HILL, N.C. ? Jan. 11, 2010 ? For a number of reasons, both financial and personal, a growing number of men are shunning the revered institution of homeownership. The figures behind this phenomenon only hint at possible reasons.
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Saturday, January 9, 2010
Fannie Mae Launches Special Approval Designation to Support Florida Condo Market
WASHINGTON, DC ? Fannie Mae (FNM/NYSE) announced today that it is undertaking a comprehensive review of hundreds of condominium projects in the state of Florida in an effort to allow additional projects to become Fannie Mae-eligible through a new "Special Approval" designation.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
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