Posted by GREEKVESTOR on October 14, 1998 at 18:59:17:
Recently I got a FannieMae foreclosure list, listing properties 1 HR away from my home base. The listing broker and/or agent said that Fannie has an investor’s program on such properties: 15%cash down and the rest financed from Fannie at 7.5%. Is that a good deal?
I thought of buying cheap, rehabilitate, and after that, sell for profit or rent to keep.
Can I go to other lenders and try to get a loan for less than 15% down?
I thought of a creative way to buy such properties from Fannie, like OPM method or Nothing Down method, but I cannot think of a solution. I’ve also thought of asking the broker to take his commission in a form of a note in leau of cash at closing.
Can anyone send any suggestions? Any ways to negotiate with Fannie to do “no down” deals?
PS. Recently, I made a deal with Fannie, and I will buy a 1FAM very soon at 15% less their listing price. Closing is in 2 weeks. Even though area comps showed that Fannie sold recently at 5% less its listing price.