Fannie Mae To Level The Playing Field
This could be good news for a lot of first-time homebuyers and anyone looking to buy an owner occupied property. I know many of my clients who are purchasing in the $250,000 range or less, probably mostly $150,000 and less, are having a hard time getting their offers accepted because they are competing against investors and cash.
The Wall Street Journal reported that “Under the program, dubbed First Look, Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed home is on the market.”
The article describes what is happening to these buyers. “Many investors can move faster on home purchases because they are able to pay cash and don’t have to wait to qualify for a loan and get an appraisal. Investors often turn the homes into rental units or flip them to other buyers for a quick profit. People seeking to take advantage of the drop in housing prices to buy their first homes have been grousing that they often lose bidding wars to investors.”
It would be great if more people followed this. I will let you know as I learn more.