Fannie Mae Homestyle Investor Mortgage - Posted by Carol

Posted by Millie I. on March 24, 1999 at 24:50:32:

Keep me informed also Irwin, I would like to keep up
with the newest Fannie Mae or HUD info for investors.

Fannie Mae usually wants to see proof that you are pre-qualified or have cash in the bank before they even accept your offer; but you can always try.

Good Luck, Keep us posted,
Millie I.

Fannie Mae Homestyle Investor Mortgage - Posted by Carol

Posted by Carol on March 23, 1999 at 19:37:39:

If ANYONE has actually used one of these, or has any solid knowledge about it, please email.
I have been on the phone for two days looking for a lender who is actually doing them in my area (FL).
FannieMae will 'send me guidelines and a list of lenders within 15 BUSINESS DAYS" !

Looking forward to hearing from you.
Thanks.
Carol

Here’s some help - Posted by GregN

Posted by GregN on March 24, 1999 at 13:36:19:

My wife was the one who talked about the loan at the convention.

We looked into a bit more when we were recently negotiating with an out of stater who didn’t want to handle his beat up home anymore. Turns out the 95% LTV is the maximum ARV you can borrow up to for purchase price and repairs (and have your new buyer assume). The problem is the investor has to put down 20% of the purchase price + estimated repairs, then funds are escrowed for the repairs and you take them out as needed (similar to a 203k, I would imagine). Who does the repair estimation?? I think that depends on your locality.

Please keep in mind that I’m not a mortgage broker, I hate taking loans in my own name, so obviously… I don’t know much about the process in general.

My advice… and my wife is probably going to kill me for this… e-mail me at NORMAN_GREG@TMAC.COM (please put FANNIE MAE in the title) and I’ll send you an excel spreadsheet of folks Fannie Mae has on their list of folks who work with the loan (by state). This would be a good starting point.

GregN

My 2 cents - Posted by karp

Posted by karp on March 24, 1999 at 09:36:52:

Okay,
Since I own a mortgage company and deal with over 400 lenders you would think ONE of them would know about and offer this Homestyle mortgage right??

Wrong. I have been harassing my employees to get info about this for a week now and they are coming up with nothing.

Sure, Fannie will send you guidelines but if the program isn’t AVAILABLE what good is it? We call it VAPORWARE. Another reason to shut down governmnet programs. There time has come and gone.

Thanks,

karp

Re: Fannie Mae Homestyle Investor Mortgage - Posted by Irwin

Posted by Irwin on March 23, 1999 at 20:51:15:

I called the 800 # (sorry, but I don’t know where it is now. Fanniemae.com ought to turn it up for you) that was posted last week. They said 7-10 days, but it only took 3 to get the package. THere was no list of lenders.
Basically the investor loan is for 70% of the purchase price plus rehab cost, or the value after rehab, WHICHEVER IS LESS. To me, that doesn’t make sense because the value after rehab should ALWAYS be greater than the pp plus rehab cost. If it isn’t, you’ve screwed up haven’t you?
I haven’t looked for anyone doing these, but I intend to find some lender who does, or one who wants to learn , and I’ll be the guinea pig. I’m looking at an REO that needs major rehap. Guess who owns it. Yep, Fannie Mae. I’m thinking of making an offer subject to my ability to get this loan. That ought to test their system.
Frankly, this program might be a good deal, if they don’t bury you in bureaucratic b.s. in qualifying and/or doing the repairs. HUD used to come up with really good programs and then kill them off with impossible criteria.
You are required to use licensed contractors. This could be a problem in keeping rehab costs down, but who knows how strict they’ll be?
I haven’t delved very deeply into all the nuts and bolts yet, and this is about all I know.
I’ll be happy to pass along any details as I come up with them.

Re: My 2 cents - Posted by BankRobber

Posted by BankRobber on March 24, 1999 at 21:08:04:

I believe that North American Mortgage, Crossland Mortgage and Norwest Mortgage are three of only four lenders that actually service(d) HUD’s 203K loans. It would seem to me that they would be the most likely candidates to offer FannieMae’s rehab loans. Their web sites make some vague and not so vague references to rehab loans. www.crosslandmortgage.com, www.namc.com

I have no illusions… - Posted by Carol

Posted by Carol on March 24, 1999 at 10:15:56:

Karp, this has become a quest … I do windmills on donkeys.
No doubt I won’t even like what I find out, but it gives me somthing inoffensive to b*tch about.
Besides, it’s a great idea, I suppose!
C.

Re: Fannie Mae Homestyle Investor Mortgage - Posted by Carol

Posted by Carol on March 24, 1999 at 07:11:04:

Thanks for the post.
I ‘was told’ it was 70% of ARV. Frankly, if it’s 70% of purchase and rehab costs, I can probably do better by getting 90% of purchase and self financing the rehab, letting my better half work his magic on the property.

What was also interesting looking was the assumability of the financing by the buyer.

Irwin, did you info mention anything about an 18 month window to turn the property over to an owner occ?
Let’s keep each other informed. This has become a quest, on general principals, whether we use it or not.
Carol