On November 24, 2009, Fannie Mae launched its "First Look" program. This program is designed to support neighborhood stabilization and promote home purchases by owner-occupants and by public entities.
Fannie Mae currently has 70,000 properties in its inventory.
The First Look period is the first 15 days a property is listed for sale, Buyers that plan to occupy the home and public entities committed to the community may are eligible to purchase a Fannie Mae property during the First Look period.
Fannie Mae will waive the earnest money/deposit requirement for public entities, and lower the requirement for individuals who have qualified to use public funds for the purchase. Buyers will also get 45 days to close.
Investors are eligible to purchase these properties only after the First Look period.
Doug,
Pretty interesting, then they turn around and tighten lending guidelines, have you seen the new DU 8.0 guidelines? Lending is still restricting on one side of the coin.
Christine,
Yes - I've seen the guidelines. I think the underwriting should always be prudent. The lack of prudence is part of what got us into this economic mess we're finally pulling out of.
Doug