Two Names Two functions...
Mac... And Fannie Mae.
Mac and Fannie Mae
are private mortgage companies that purchase mortgages from lenders. They are
the two major secondary mortgage companies in the United States.
that mean? It means they have access to a lot of lenders and thousands of foreclosure
How Does Fannie Sell Homes? The Basics.
find out about Fannie Mae-owned homes through local real estate brokers. All Fannie
Mae-owned homes are listed in the local Multiple Listing System (MLS).
Fannie Mae requires prospective buyers to be pre-qualified
for a mortgage loan. That's good for you because you'll know how much you can
afford, and it assures Fannie you will be able to complete the transaction.
First, you present your offer to the listing broker
who will present it to Fannie Mae for consideration. Through the listing broker,
Fannie Mae will do one of three things in response to your offer: accept your
offer; reject your offer; or make a "counter offer."
Mae will NOT accept offers that are contingent on the sale of the buyer's current
Last... The Bottom Line.
A counter offer indicates
the start of negotiations that may or may not result in a sale. If a sales price
is agreed upon, you will sign a "purchase and sales agreement" and begin the process
of obtaining mortgage financing to purchase the home.
Fixing It Up...
Does Fannie Do Repairs?
Sometimes! Fannie will sometimes repair
a home prior to listing or as part of the purchase agreement. But Fannie Mae sells
each property in an "as is" condition. When you take ownership of the property
you accept it that way.
That means getting your own professional home inspection,
prior to closing, to reveal any problem that might force you to reconsider!
What About Freddie... How Does Freddie Sell Homes?
Freddie Mac homes
are available through local real estate brokers, too. One key difference from
Fannie is that Freddie repairs many of the homes it sells, at an average of $5,000
per home. You can choose to repair the home yourself, but Freddie advertises its
homes in "move-in" condition.
You still need your own home inspection to
make sure you know what you're getting!
Getting Funds... Freddie
Freddie says it offers financing through local lenders,
at "competitive interest rates," under the following terms: no mortgage insurance
lower title and escrow fees only 5 percent down on all available homes
the Story on Our Friends Freddie and Fannie...
Now let's look at HUD
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