FNMA bank foreclosures are decent properties that middle and low income people and families can acquire.
As part of government efforts to provide affordable housing the Federal National Mortgage Association offer their foreclosed homes to owner-occupiers who are purchasing their very first property.
The homes are priced significantly lower than other types of foreclosures with financing schemes that are way more flexible than traditional mortgages.
More popularly known as Fannie Mae foreclosures, FNMA bank foreclosures comprise foreclosed homes which were bought by the previous owners using a loan that was secured by Fannie Mae.
The value of homes paid through Fannie Mae-backed financing are already priced low to begin with.
But many still struggle to meet their obligation and so foreclosure follows.
These foreclosures are then sold at an even lower price to people who can meet certain conditions apart from being the owner-occupiers of the home.
Buyers would have to be pre-qualified for a home loan.
This is a standard but an unwritten rule as sellers will be more inclined to deal with a buyer who can manifest their capability to pay for the property they will buy.
Obtaining this certification from a bank or other mortgage lenders require candidates to have a spotless credit record and a steady source of income.
Things to Remember when Purchasing Fannie Mae Foreclosures Like most other foreclosures, FNMA bank foreclosures are sold as is so it would be prudent for buyers to allocate funds for repairs and renovation.
A title search is likewise an important task to undertake to ensure that the home is not burdened by any encumbrances that the previous owner may have attached to the title.
It is also wise to survey the value of similar homes in the neighborhood to arrive at a better view of the actual value of the property.
There are some government grants and assistance programs being offered to qualified applicants.
These can go to lowering down the down payment or the closing costs.
It can also be applied to shorten the payment terms or bring down the interest rate on the mortgage.