It’s a bit ironic, but Â 3% down payments are back!
This 4 bedroom home (MLS #236301)Â listed at $332,900 is in escrow with HomePath
One of theÂ sometimesÂ misused financing optionsÂ that contributed to the current housing dilemma, the 3 % down, is now being offered as a possible solution by Fannie Mae. As most of you know, the majority of Â US home mortgages are insuredÂ by either Fannie Mae or Freddie Mac. So, when a home goes all the way through the foreclosure process, the lender it ends up with is often either Fannie Mae or Freddie Mac. End resultÂ is Fannie and Freddie own a lot of real estate and need to sell it. But how do they do that in today’s market?
First, since these homes are REO’s – or Real Estate Owned – they are usually priced below the market value of other homes in the area. These homes, along with short sales, are the distressed properties that have droppedÂ sales prices down for the last 2 to 3 years in the US and Hawaii.
But it in today’s market it takes more than just a low price to sell a home or condo – you need to find a buyer that wants to buy the property AND can pay it!Â That paying for it part has been a bit of a problem for buyers in the last few years. So, enter Fannie Mae with a whole new program called HomePath with 3% down and low rates that are intended to sell Fannie Mae inventory. The Hawaii program is being offered by Wells Fargo and below are the some of the highlights of the program:
- 3 %Â Down Possible
- Down Payment May Be a Gift
- Second Home Financing Available
- Low Interest Rates – CurrentlyÂ Around 4.5%
- 30 Day Close Usually
- Investor Financing Also Available
After the 3% down, my biggest ohh and ahh was that this also applies to 2nd home buyers.Â That’s right – with some Fannie Mae REOs Â you can use this program to purchaseÂ the propertyÂ as a 2nd home. Not all condosÂ or homes qualify for this program so if you want to use the HomePath program you’ll want to make sure the home or condo is in this program.
Bottom line is HomePath is selling properties on the Big Island. In Kona there areÂ 14 in Â escrow ranging in price from $82, 900 for a condo to $519, 900 for a home. Waimea has two homes in escrow and no active listing at this time. Hilo has two active and two in escrow. And then there’sÂ Waikoloa Village with 9 homes in escrow but only two available. Waikoloa Beach Resort is puttingÂ condos into escrow with 2 Colony Villas and one Shores unit. There are 3 Waikoloa Colony Villas units that are still available that could use the 2nd home program available under HomePath. There are also 3 condos in Waikoloa Village that allow pets that range in price from $89,900 to $158,900.
This a great program that can either be used by a homeowner, a 2nd home buyer or an investor. But, the inventory tends to move fast as its priced well and has the best financing available at this time. So, if you want to use this program you should be see a lender in advance to have your financing set up and be ready to move quickly on a home or condo. If you would like more information on Homepath or would like a listing of qualified HomePath homes or condos, please feel free to contact me.