Fannie Mae is looking at ways to reduce their REO property inventory. Their HomePath financing program is one way. HomePath lets both traditional buyers and real estate investors buy selected Fannie Mae REO properties for little money down and with low transaction fees.
Here are some of the specifics:

Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 10% for investors) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or even an employer.
No mortgage insurance*
No appraisal fee

Ten percent down, as you know, is hard to get these days. Plus the HomePath Special Financing Program requires no appraisal and no mortgage insurance. Fannie Mae requires no appraisal. Most banks and asset companies simply get 2-3 BPO’s, but not Fannie Fannie Mae gets an appraisal and a BPO to determine listing prices.
The program does have requirements. You have to use an approved HomePath lender. You can go to the HomePath web site to find HomePath approved lenders.
Another condition of the HomePath program is that only certain Fannie Mea REO properties are in the program

Send Choice Jacksonville Realty an e-mail to JoyatChoice@Hotmail.Com . We would be happy to run a search for you and find some good Fannie Mae investment property candidates for you.

If cash is a bit tight, or you simply like to get into your investment homes with little down, the Fannie Mae Homepath program may be the ticket.
As always, we are here to answer questions anytime… well maybe not at 2:00 am.

HOUSE HUNTERS BOOTCAMP

The sun is starting to shine! Spring is in the air. We are all tired of being inside – new plans are being made. Fresh starts are fun! Many of us will begin looking for another home or our first home. Here are some things you can do to make the process fun and productive.
1) Go online and checkout realtor.com or visit choicehomz.com for free access to 3 separate MLS sites. You will find the Jacksonville area MLS, which includes Hubert, Richlands, Sneads Ferry, Maysville, Beulaville, Swansboro and more. Also the Topsail Island MLS – which includes Surf City, Sneads Ferry, Holly Ridge and Hampstead and the Carteret County MLS which includes Swansboro and more extensive list of homes for sale in Carteret County and the surrounding area. First choose the area you are most interested in and then enter criteria such as bedrooms, baths, and most important, the location you are interested in. Do a search and bookmark or save everything that looks interesting to you.
2) Choose the right Real Estate Agent. Make it someone with whom you feel you can be yourself and share your wishes as well as needs in a home. Choose someone you feel you can trust to work in your best interest. It is important that your agent LISTENS to you. A Buyers Agency means that your Real Estate Agent will be working for YOU, and this service is free.
3) Choose an Agent and discuss with them your criteria (we have videos online to enable you to meet your agent). First impressions are important. Advise your agent of the homes which interest you and ask them if they know of any others matching your criteria. Ask the agent to email the listings to you and check them out before meeting.
4) Finally, make an appointment to go into the office and discuss with a loan officer the price of home you are interested in to be sure you qualify for that amount or more. Your Agent will offer a choice of loan officers and even call the lender for you. You may prequalify over the phone.
5) AT LAST! Time to look at the best houses for your needs. Don’t eliminate something that looks great even if it doesn’t meet ALL your criteria. No home is perfect and you may love it and decide that it is OK if it has 1 ½ baths versus two. Keep in mind that square footage is not always the determining factor for roominess. The floor plan makes a huge difference!
6) When you arrive to meet your Agent, bring a pad and pencil and your camera. You’d be surprised at how much you can forget when looking at several homes! Make notes and photograph some of your favorite features.
7) Once you have picked a home that works for you – your Real Estate agent will lead you through the inspections, survey, insurance, taxes, any warranties, and give you guidance in finding the right answers. The Agent will give you a list of contractors, home inspectors, lenders, insurance agents, etc. from which to choose.

HAPPY HOUSE HUNTING!!

Squirrel Sense: Prevailing in Tough times

Squirrels are ALWAYS facing intense competition amid threatening socioeconomic conditions. Much of what will equip us to succeed despite these challenging economic times can be discerned by observing their behaviors. They are:

1. early risers.
2. highly industrious; endlessly striving.
3. not intimidated by those larger than they are.
4. undaunted that the odds are stacked heavily against them.
5. not expectant of help from others; they take responsibility for themselves
6. able to accomplish amazing feats because they’re willing to try what those who are smarter than they are believed to be impossible.
7. willing to turn themselves upside down to get what they need.
8. establishers of territory or niche, and are willing to be aggressive in defending it.
9. perpetually instantly to opportunities and threats.
10. FAST – responding instantly to opportunities and threats.
11. instantaneous decision makers when necessary.
12. willing to be off balance, even to fail.
13. willing to take the leap, to take risks, to get what they want.
14. able to ignore their wounds, and continue their mission.
15. resolved not to cower when under peer attack.
16. not intimidated by those of larger size.
17. confident. They’re committed to outlasting or outsmarting their enemies.
18. sophisticated communicators.
19. willing to be thought of and treated as pets if that helps them succeed.
20. not passive; they behave commensurate with being in competition for survival.
21. action oriented, regardless of their fears. They have a fighting spirit rather than a victim mentality.
22. unconquerably persistent. When confronted by barriers, they find another way to win. They just never, Never, NEVER give up.

Source: Carolina Business – March 2010

EARTH DAY WEEKEND April 22-25
NC DEPT OF COMMERCE OFFERS ENERGY STAR APPLIANCE REPLACEMENT AND REBATE PROGRAM

North Carolinians will be able to save on replacing old home appliances with new Energy Star appliances. This program will be during Earth Day Weekend, which is Thursday April 22 through Sunday April 25. Rebates will be 15% on Energy Star related appliances, and will be in addition to any store, manufacturer or other discounts.
Home appliances that are eligible are Energy Star clothes washers, dishwashers, refrigerators and freezers. North Carolina residents who are purchasing replacement appliances for their home are eligible. Residents purchasing multiple appliances or contractors are not eligible.
For more information on the rebate please visit www.energync.net. Or call the NC Dept of Commerce at 919-733-2953.

New Program for Homeowners Who Sell at a Loss

The newest program by the Obama Administration will encourage homeowners who owe more than the market value on their home to short sale the property and receive moving expenses ($1500) from the Federal Government. The important news is that Lenders will be compelled to accept the short sale arrangement, forgiving the difference between the market price of the property and what they are owed.

Under the new program, a lender would use Real Estate agents to determine the value of a home and the minimum to accept. This value would not be shared with the owner, but if an offer comes in that is equal to or higher than the determined amount, the lender must take it.

The program was announced on November 30 but the details are still being fine tuned.

Information was gathered from the New York Times 3-7-10

“FLIPPING” REAL ESTATE

Flipping real estate refers to buying a property at a low price – and selling it at a profit. Many people have made a fortune doing this but it is also possible to lose money. The properties’ market value, location, cost of repairs, length of time to repair and update and marketability all must be considered. Flipping is also done sometimes without improvements, although condition of the property may or may not be the reason it can be bought under market. It is advisable to have a licensed contractor inspect the property prior to purchasing.
If all these items are considered, “flipping” can be a lucrative venture. The danger in flipping is underestimating repairs or paying too much for the property.
Sometimes properties are bought by investors and then resold “as is” to another investor at a small profit. This is not as profitable as buying the property at a bargain price and fixing it up – but it is a quicker return.
When repairing and fixing up, it is good to discuss with a knowledgeable real estate agent which items are required to be repaired for the property to be eligible for conventional, FHA, VA and other types of financing. The professionals at Choice Jacksonville Realty are available to help with your investment needs.