Fannie Mae still lending 100%

[Michigan CG]

Residential gurus please help.....

The house we want to buy is a Fannie Mae repo. The people who have made an offer have no money down....100% financing, seller paying closing costs. They were rejected by the original lender because of declining value on appraisal.

Realtor just called me and said it looks like they might get the house because it is a Fannie Mae.

Are they really still lending 100% especially in declining markets?

Thanks for your time.

 

[John LaBelle]

I do some sales work as well, and a Buyer client of mine just closed on a home about 2 weeks ago with 100% financing in and area where values are still dropping slightly. It wasn't a repo home though.
100% financing is still available, but it is much harder to obtain. The buyer needs to have excellent credit.

 

[Michigan CG]

Anyone else.......trying to decide if I should look at option #2.

 

[Mr Rex]

If I understand you correctly, you are 2nd in line for a Fannie REO? If so, and Fannie accepted those conditions, you might be SOL, time to look for option 2. However, your agent should press the issue, most REOs acceptance of contract are heavily weighted towards the REO owner, and leaves them an out to accept the next highest and best offer if there are any problems with the original contract terms.

 

[Bob Ipock]

http://www.fanniemae.com/index.jhtml




Fannie Mae does not directly loan money to you, the "primary" Borrower, but rather loans money in the "secondary market", or to lending institutions. In short, by lending money to your lender, this frees up capital for your bank so they can go on to make more loans.

In order for Fannie Mae to buy single family home loans from mortgage bankers, savings and loan associations, commercial banks, and other financial institutions, the loans must conform to their set of "Fannie Mae guidelines." They require certain "debt to income ratios" and specific supporting documentation on your employment, assets, and debts. Normally you will be required to verify two years employment. If you have a 25% or greater interest in a business, you would be considered self-employed. An accurate and reliable appraisal will be required. Fannie Mae requires that lenders use an appraiser who is licensed following their guidelines.

Fannie Mae only deals with mortgages made to individuals. A corporation or general partnership would not qualify for a Fannie Mae loan. Fannie Mae will allow a mortgage that has a co-borrower, and that person is not required to take title to the property. The income from the co-borrower will not be accepted for qualifying purposes, unless that person also signs on the promissory note.

Loans made for your principal residence, second home, or an investment property, all may qualify under a Fannie Mae loan program.

 

[Terrel L. Shields]

If Fannie owns it fannie will finance it if they have to....