Freddie Mac, one of the nation’s troubled mortgage giants is expanding its program for owner occupants to buy a home before investors. The program is set to launch Friday, giving buyers preferential treatment over investors.
The program “supports Freddie Mac’s mission to stabilize communities and foster affordable home ownership opportunities by giving home buyers 15 days to buy a Home Steps home as their primary residence without investor competition,” Freddie Mac said in a statement announcing the expansion of the program.
Investment, vacation or second home purchasers are ineligible. The announcement extends a Housing and Urban Development Department program launched September 1 st that provided a 12-day window to owner occupant buyers to purchase newly listed foreclosures before investors.
Home shoppers should contact a real estate broker or agent for additional information on the program, which was first reported by Housing Predictor.
The Freddie Mac program gives primary owner occupants an advantage to purchase the lower priced properties after complaints were leveled at lenders by buyers who were being “shut out” from purchasing the homes as a result of investors often being able to pay cash for properties.
“Expanding the Freddie Mac First Look Initiative emphasizes Freddie Mac’s commitment to manage its REO inventory to help stabilize communities,” said Freddie Mac Home Steps vice president Chris Bowden.
In Nevada, where foreclosures are at the highest level in the country, buyers who plan to take part in the program will be extended a 30 day window to shop without investor competition.