Are you an investor who has been buying or hoping to buy properties through the Freddie Mac First Look Initiative? Well sit down for 15 days to wait your turn. As part of a Neighborhood Stabilization Program (NSP) investor contracts on properties will take a back burner to owner occupants or non-profit organizations engaged in community stabilization efforts.
This doesn’t mean you might not get the property you want. Often I find investors are looking at properties that an owner occupants are not interested in. They may need work that knocks them out of qualification for FHA or VA loans. Your biggest competition may be the non-profits with the resources to rehab properties and offer them on lease purchase agreements to city, county or state employees who might not be able to qualify to purchase them outright.
Here are some key points:
• The 15-day Initiative time period is based on MLS days, not the date of the Listing Broker listing.
• Multiple offers received during the 15-day Initiative time period are processed in the same manner as a normal transaction using the multiple offers procedure.
• Second home purchasers are not eligible for Freddie Mac’s First Look Initiative.
• In Nevada, Freddie Mac’s First Look Initiative window for buyers who plan to become owner-occupants is being extended to 30 days.
• Freddie Mac First Look Initiative properties are handled by local real estate brokers not directly through Freddie Mac.
If you are a buyer in Northern Virginia interested in properties that are being marketed by Freddie Mac Home Steps then give me a call at 703-346-2213. We can talk about whether the new program may give you a new chance to purchase a home in the area. If you need a recommendation to a local lender to discuss your qualifications let me know and I’ll connect you with a mortgage expert to help you look over financing options.