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This reduces competition from professional, cash home buyers looking to flip or rent out the property.Īfter 20 days, investors are allowed to buy these houses. You don’t have to compete with investor-buyers within the first 20 days that the home is on the market.įreddie Mac’s First Look Initiative ensures that only non-profits and owner-occupying buyers can submit offers during that initial period. You buy HomeSteps properties by working with a licensed real estate agent, just like you would with any property. The homes are easy to find using Freddie Mac’s search tool, and you can sign up for email updates when property meeting your requirements becomes available. Property types include single-family homes, condominiums, townhomes, manufactured homes and rural properties. HomeSteps properties can be found all over the U.S. This loan requires just three percent down and comes with reduced mortgage insurance. Eligible buyers can also purchase HomeSteps properties with other mortgage programs, including FHA and VA home loans.įreddie Mac’s Home Possible Advantage program is another financing option. The financing offers several advantages, including down payments as low as five percent with no mortgage insurance and no appraisal requirement. It’s only the financing that is limited to select states. Keep in mind that HomeSteps properties are available in almost every area of the U.S. Freddie Mac says it’s working to expand HomeSteps financing to more areas.
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HomeSteps currently offers financing for qualified buyers in ten states - Alabama, Florida, Georgia, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Texas, and Virginia. These warranties cover many repair costs for homeowners, removing much of the uncertainty that can comes with a pre-owned house. While there is no guarantee that an individual property will be sold at a discount, Freddie Mac says that on average, their homes sell for 95 percent of market value.īuyers who purchase these homes get a $500 credit for a home warranty. HomeSteps properties are cleaned and often repaired with new paint, flooring, and appliances. HomeSteps Advantages For Buyersįreddie Mac’s program comes with a number of benefits that buyers won’t find via a standard foreclosure home purchase. But how can buyers benefit? By purchasing a home at a discount, with better mortgage terms. This promotes vibrant, populated communities. It spruces up its foreclosures then puts them back on the market. HomeSteps is the program through which Freddie Mac, one of the largest mortgage agencies in the U.S., sells its foreclosure properties.įreddie Mac’s objective is to protect neighborhood home values, and the neighborhoods themselves.