As the summer heats up, so too does competition for homes. Multiple offers on a property — a rarity in recent years — is more frequent today as the spring wave of home buyers starts to join up with the swarms of buyers getting antsy (Chicago Public School families, for example, looking to land a spot in a good school district before the semester starts). It all adds up to a surge in prices.
Long gone are the tax credits of 2010, so where is a buyer to turn when seeking a break on costs? For now, foreclosed properties offer the most lucrative buyer credits and incentives. Most specifically, Fannie Mae's HomePath program gives buyers up to 3.5 percent in closing costs, plus some perks for the agent as well. This is an effort to move the properties that Fannie Mae has collected due to the foreclosure crisis. The additional benefits include an extremely low down payment, even on investment properties. The minimum down payment through HomePath Financing is 3 percent, with renovation loans available as well.
You can view the properties in Illinois here, and there are a variety. Some are in great condition, while some are ready to be torn down. Foreclosed properties aren't for every buyer. This is certainly a buyer-beware market, where you may not get a traditional warranty deed, but rather a special deed. And there may be other red flags for certain buyers, but for those who want a great deal, it's worth a look. (Or for those who have purchased recently, it's a frustrating look at how timing and luck impact price).
But the key is that the HomePath incentives are slated to end on October 31 (you must close your deal by this date). And given the time it takes to secure a loan, the window is closing on these HomePath incentives.