Ive been doing some research on Fannie Mae properties, as a potential first purchase. Wondering if anyone can speak on their experience with these properties. I would be using it as my primary residence.
Fannie Mae, HUD and other programs like that can be a great source of properties, especially if you can truthfully qualify as an owner occupant. With Fannie properties it is more like a traditional offer and acceptance model. With HUD, you simply bid and wait until you have an accepted offer before you have to submit proof of funds, earnest money etc. As owner occupant, you have an opportunity to get in early before investors do. That is good. The bad side of that is that you don't get much pricing flexibility with such a new listing. Keep your eyes open for what you want in terms of a home and investment and be prepared to jump or keep waiting depending on what volume for your area is like. Good luck.
@Chris Simmons is spot on. I bought a FNMA 4plex as my first owner-occupant property (in the 15-20 day "first look" period for owner occupants), and subsequently bought a FNMA 4plex that had been on the market for over 200 days.
You can use HomePath or FHA financing for FNMA purchases. Homepath has higher downpayments for 2-4 units, whereas FHA you can still do 3.5% or 5%. Whatever it is right now.. 5% down on owner-occ Homepath SFH (as long as it has the Homepath financing logo on homepath.com . The first look period and low-downpayment options are huge if you are having a hard time getting into contract like I was.
In my area, the new Homepath listings are priced higher than non-FNMA listings, presumably because of the advantageous financing. But you can get deals sometimes when they've been on the market for a while and are going to go to auction. Will depend on your area.
Homepath also has the "renovation" loan for I believe up to $30K in repair funds, and FHA has the 203k for significantly more in repair funds if you're interested in buying a fixer, but still with a low down-payment, and without coming out of pocket on the rehab costs, which can be very cash intensive.
I close on one today, actually. I negotiated them down to accept an offer of 84% of the asking price. It was on the market for around 25 days. Not in horrible shape persay, but it does need paint, flooring and appliances. You should be fine with owner-occupying, although if you're in a very hot area, you may have to compete with investors if you do not get it under contract before it is opened to non owner-occupants..Sometimes these things go for a few thousand more than what they are listed at. If you like it and the numbers are right, jump on it. Nothing ventured, nothing gained.. Right?
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