Found a House in the FNMA Homepath Program!!

[Anonymous]

I've found my dream  home which is a foreclosure listed on Fannie Mae's website. I have been pre-qualified for a loan in the amount of the full asking price by one of their Homepath lenders. I have the 3% in savings for the required downpayment in this program, have good credit  scores 725/725/767,  low debt -  which only consists of my current mortgage on a less expensive home - (balance around $80k that I will eventually sell or turn into a rental property), and a car payment. I also make over $150k salary with benefits in a profession I have been in for over 20 years.

Just like anyone else, I'd like to get the best deal and keep as much money in my pocket as possible, so I would like to make an offer which is about 10% less than the asking price, and ask FNMA to pay 3.5% of asking price as closing costs which was an additional incentive they were previously offering which just expired at the end of June. My question to all of you experts is, do you think they will agree to my closing cost offer since it was a reasonable incentive that they were willing to do in the past, or would it depend on how badly they want to get rid of the property and the number of other offers they may receive without this request?

TIA for any advice,..

[Anonymous]

Think of closing cost credits as additional reductions to the offer price.  If you are thinking 10% below list + 3.5% CC credit, that's a pretty substantial reduction from list price.

Ultimately, you hit the nail on the head though with it depends on the other offers.  I've been financing people who were making offers significantly below list and I've also seen people lose out who were very near to full list price.  The key thing you said was "dream home."   Those tend to be competitive since half the FNMA inventory probably doesn't get described as "dream home." 

To get the best deal, you actually need an accepted offer....I've watched quite a few people in the past 2 years miss out on great deals because they were pressing the lowball end of the envelope a little hard. 

[clipperskipper]

My wife and I have been buying REO's for three years now, all single family homes. If you have a primary home figure 10%

down with the right lender, 97% of list is the average selling price of REO's.