Tips for Fannie Mae Investor Purchases
This email was sent to me by a lender. A quick update today on some valuable things to know when an
investor purchases a Fannie Mae foreclosure.
- Only owner occupied buyer contracts are considered for the first 15 calendar days of the listing. Fannie Mae will not let the listing agent turn in an investor contract until the 16th+ day. Be sure to check with the listing agent to find out what their procedure is on an investor offer. Some agents may accept your investor offer and just hold them at their office to turn in on the 16th day - some may not they may make it your responsibility to keep up with the timeframe and send it over to them.
- Once an investor purchases a Fannie Mae foreclosure, there are deed restrictions- the property cannot be resold for more than 20% over the purchase price for the first 90 days. For example, if the investor purchased the Fannie Mae foreclosure for $100,000, the property cannot be resold for more than $120,000 for the first 90 days (regardless of the upgrades and repairs done).
- If your investor client is using a hard money lender to finance the purchase of a Fannie Mae foreclosure, the amount that can be added to the loan for repairs etc. cannot exceed 20% of the sales price. So, for example, if an investor purchases a Fannie Mae foreclosure, they can only roll in up to an additional 20% of the sales price (even if the bank or hard money lender is willing to give more money because of the perceived equity in the property).
As always, please feel free to contact me with any questions or to prequalify any buyers.
Have a great day!
Tammi Lewis
Senior Loan Consultant
1st Mariner Mortgage
Cell#: (410)725-9451
Fax #: (443)296-9132
Buying or Selling a Home in Northern Virginia? Contact Kim Darwaza of RE/MAX Allegiance at 703-856-2254 to discuss all of your Real Estate needs. To search the Northern Virginia MLS please visit
http://www.kimdarwaza.com.