I was supposed to meet my realtor today to get the paperwork together for an offer on a house but the realtor for the house wouldn't return her calls and the wording on the listing was confusing. First it says cash only, then it says it is eligible for a Home Path Renovation Mortgage with only 3% down. I looked in the Home Path Renovation Mortgages and I definitely do not want one. It will not allow you to work on the home yourself. I would have to hire a General Contractor to do all of the work.
Hopefully tomorrow we will hear from the other realtor and then we can figure out how to proceed. Tomorrow I am going to the dentist first thing to have him look at my cracked tooth. Might as well spend money on my teeth since I don't have a house to spend money on yet.
So the agency that sells to do can decide how the sale is financed?
@Lizzie - The Seller, which I assume is Fannie Mae because Homepath is their mortgage product, can restrict financing terms, the agency is just listing the Seller's terms. In this case, it is most likely that the Seller is restricting purchases to either all cash or their own in-house financing due to the condition of the subject property. Because the property needs extensive repairs, they already know it won't pass conventional mortgage underwriting so they won't accept offers contingent on a conventional loan.
@Daizy - There was a time when Fannie Mae would accept an offer on a rehab property if the Buyer could show they had enough liquid assets to afford the needed repairs. What they don't want is someone spending their last dime to purchase the property and then have no money left to fix it so FNMA gets the house back two years later. You might ask the broker to see if you could have a regular Homepath Loan, which is very similar to an FHA loan, if you can show you have adequate assets for the repairs.
I get it. Although i realized it was re-possessed I hadn't really thought about who owns the property in relation to who provides loans.
I don't know what is up with the agent. I think she is just confused. My realtor said she has a lot of these properties and I don't think she knows much about them. We got permission from my bank to go ahead with a conventional loan. I'll explain that in today's post.
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