For those of you frustrated about the $3 billion “Cash for Clunkers” subsidy for the auto industry, don’t forget that the Fed has set aside over $1 trillion to buy up mortgages.
And, when you take into account homebuyer tax credits, interest deductions, and banking bail-outs, the real estate industry, directly and indirectly, is probably the most subsidized industry in the history of … ever.
Speaking of subsidies, Fannie Mae is now offering the most favorable financing ever for the buying of Fannie Mae Foreclosures through its HOMEPATH program. There are two key features to the HomePath program: (1) it does not require an appraisal and (2) it does not require PMI (Private Mortgage Insurance). It will help finance properties where the appraisal or condo requirements would be a hurdle for other forms of financing. The waiving of PMI will help where a loan approval is possible but no PMI company would write a PMI policy (e.g. condos with less than 10% down). In addition, the HomePath program requires limited down payment – 3% for owner occupied and 10% for investment properties.
Fortunately, our mortgage bank is tied into one of the few lenders that is allowed to offer Homepath Financing.
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646