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What’s Fannie Mae’s “First Look” Policy?

by admin on February 22, 2012
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Fannie Mae’s First Look Policy

Many of today’s buyers looking for a “deal” tend to lean towards bank owned properties….and the king of bank owned homes in Big Bear Lake is Fannie Mae.  Fannie Mae‘s website, www.homepath.com, offers up-to-date information on what’s available, what’s currently in escrow and what’s coming on the market.

Fannie Mae‘s “First Look” policy according to their website is a “marketing period created to promote homeownership and contribute to neighborhood stabilization — it allows homebuyers to bid and purchase foreclosed properties before they are made available to investors”.  The “First Look” policy is typically a 15 day time period…you can view the countdown time period on Fannie Mae’s property information page on Homepath.com displaying the days remaining to purchase.  Eligible buyers during the “first look” policy are owner occupants.  (Owner occupants are those buyers that will occupy the property as their principal residence within 60 days of closing and will maintain their occupancy for at least 1 year. Owner-occupant purchasers are required to sign an Owner Occupant Certification as a rider to the Real Estate Purchase Addendum. A buyer purchasing in the name of a trust, purchasing as a vacation/part-time residence, or purchasing so another person or relative can live in the property will typically be considered an investor and not eligible during First Look).

Fannie Mae’s Home Path Financing

  • Loan-to-Value’s of up to 97% for owner occupied properties and 90% for second homes and investment properties.
  • Allows for up to 10 financed properties (greater than 3 financed properties, LTV and FICO restrictions apply)
  • No condo project approval or condo questionnaire required
  • No appraisal required
  • No Mortgage Insurance required (ask your lending professional for more details)
  • Up to 6% of seller contributions allowed
  • Non-traditional credit allowed
  • Go to www.homepath.com for current listing of eligible Home Path properties.

Fannie Mae’s market share in Big Bear

301 of the 933 homes sold in the Big Bear Valley in 2011 were bank owned properties.  Fannie Mae represented 91 or 30% of all the REO’s sold according to the Big Bear Association of Realtors MLS.  Another way of looking at it…just under 10 percent of all properties sold in 2011 were owned by Fannie Mae.  Sales prices ranged from $26,900 to $380,000.  The average days on market was 84 days and the average sales price per square foot was $111.49.

Click here to search for Foreclosures in Big Bear.

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