Fannie Mae and Freddie Mac Whipping Out Homes at 100K Discounts?

Wow, I had heard that something similar had happened in the last big housing downturn. 

Apparently Fannie Mae and Freddie Mac are trying to unload their inventory of foreclosed homes.  By so doing, they are providing home buyers with a new opportunity and whipping out discounted homes to the tune of 100K under market value.

Fannie Mae’s homebuying program is aiming to help out new homebuyers and allows for low down payments of a minimum of 3% on 30 year fixed mortgages.

But that’s not the cherry on the top! 

 No private mortgage insurance is required which is normally charged for any buyers putting down less than the standard 20% AND with most foreclosed properties, Fannie and Freddie generally repair items such as leaky roofs and damaged electrical work, handle small projects like replacing appliances that are broken or missing, replacing old carpet, or fixing damages left by the former owners or vandals. 

Wait, there’s more: there is an optional mortgage that includes extra financing up to $30K for repairs and improvements.

Homeowners are going to be given precedence over investors who typically beat most average buyer out of the market with cash offers.

A SmartMoney.com search of Fannie Mae and Freddie Mac listings revealed that buyers could find properties in good neighborhoods for $100K less than comparable houses nearby.  For example, a five bedroom, 3 bath with a backyard, deck and two car garage in Georgia was listed for 445k with Fannie while four blocks away a similar non-foreclosed home was listed with a realtor for 639K.

To me that could also mean that the non-foreclosed home was overpriced, nonetheless, this may aid many new homeowners looking to purchase a house that typically are whipped by the cash flush investors.

See Fannie Mae homes or see Freddie Mac homes here.  And of course if you have any questions the San Diego Real Estate Cafe Crew is always here to help at [email protected]