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Replies (18)
- Dave Skow, "daveskow"
- Contributions:1105
this is likely a moot point as you are not using any financing to purchase the property .....
as the agent (s) involved this question and ask if that sentence can be removed
as the agent (s) involved this question and ask if that sentence can be removed
- Allison Smith, "1AllisonSmith"
- Contributions:76
I disagree that it is a moot point. You are signing a legal contract stating that you will be an owner occupant. If this is not your intention ask your agent to have that clause removed.
- Dave Skow, "daveskow"
- Contributions:1105
the point I initally was making is that since its a cash offer , the seller is likely to not require the buyer to use as a " owner occupied " property
of course - this clause should be addressed and removed with all parties agreeing and signing off on this ....
of course - this clause should be addressed and removed with all parties agreeing and signing off on this ....
- Suberry
- Contributions:4
Thank you guys! My realtor believes that this is a clause that can not be removed since Fannie Mae should be selling to owner occupied clients and not investors. Do you agree?
- Allison Smith, "1AllisonSmith"
- Contributions:76
Dave- I just didn't want the buyer to think that it wasn't important.
The one problem that I see is that it is a Fannie Mae property and they do price the homes lower than market value in an effort to get people into their own homes. They may not remove that clause, or if they will, they may want to renegotiate the price.
The one problem that I see is that it is a Fannie Mae property and they do price the homes lower than market value in an effort to get people into their own homes. They may not remove that clause, or if they will, they may want to renegotiate the price.
- Bob Kelly, "Robert T. Kelly"
- Contributions:422
As a practical matter: Fannie Mae is never going to drive by and check on who is living there.
- Michael Emery, "MikeEmery"
- Contributions:7298
Ask your Realtor if this property is part of Fannie Mae's 'First Look' program.
The program will only accept offers from homeowners for the 1st 15 days. After the 15th day anyone (including investors) can make an offer.
Fannie Mae will make you sign an addendum that states you WILL be living in the property for one year after purchase. If you're caught, the penalties can range from forfeiture of the sale, a $5,000 fine for you AND another $5,000 fine for your agent. Obviously the addendum is moot after the first 15 days.
If you present a non-owner occupied purchase agreement in the first 15 days on a property with the First Look program, it will be rejected by the asset manager.
And if the home is in the 'First Look' program, it doesn't matter if you are paying cash, credit or beads. Fannie Mae will enforce the addendum. So the only way to submit a non owner occupied offer is to lie.
Personally, I would not sign the addendum if I was not going to live in the property. AND I would ignore the advice of those 'professionals' who say otherwise.
The program will only accept offers from homeowners for the 1st 15 days. After the 15th day anyone (including investors) can make an offer.
Fannie Mae will make you sign an addendum that states you WILL be living in the property for one year after purchase. If you're caught, the penalties can range from forfeiture of the sale, a $5,000 fine for you AND another $5,000 fine for your agent. Obviously the addendum is moot after the first 15 days.
If you present a non-owner occupied purchase agreement in the first 15 days on a property with the First Look program, it will be rejected by the asset manager.
And if the home is in the 'First Look' program, it doesn't matter if you are paying cash, credit or beads. Fannie Mae will enforce the addendum. So the only way to submit a non owner occupied offer is to lie.
Personally, I would not sign the addendum if I was not going to live in the property. AND I would ignore the advice of those 'professionals' who say otherwise.
- Glenn Miller, "Glenn Miller"
- Contributions:4
Fannie Mae may not be driving by to check on 'who's' living there. Nor are there any Fannie Police. However, if there is a situation where it is noted that you are not living there, and they find out you could be fined based upon the terms of the contract.
More importantly for the Real Estate Agent that is representing you, if any, that Agent must certify that you are planning on living there. Now it might be the listing agent, but it's still an agent that has to document that you are living there. There are repercussions for the agent if this is ever identified.
The best is to get the clause removed, but likely Fannie Mae will not remove it. Good luck.
More importantly for the Real Estate Agent that is representing you, if any, that Agent must certify that you are planning on living there. Now it might be the listing agent, but it's still an agent that has to document that you are living there. There are repercussions for the agent if this is ever identified.
The best is to get the clause removed, but likely Fannie Mae will not remove it. Good luck.
- Sam DeBord, "SeattleHome.com"
- Contributions:3472
Fannie is giving financial incentives to Owner-Occ purchasers and their agents. You'll sign an owner-occ statement, so if you breach that, you're potentially putting yourself at risk.
- JoEllen Ufner - ABR,GRI,SFR, "jufner"
- Contributions:397
I would recommend asking your agent ...best of luck
- Mya Berlyant, "MyaBerlyant"
- Contributions:260
Fannie Mae requires all offers to include a Fannie Mae addendum. Those who intend to be owner occupants must sign another special form. The reason for that is that Fannie Mae provides First Look period to Owner Occupants (first 15 days of any listing in all states except Nevada where it's 30 days) so that the investors don't scoop up everything. Even after the First Look period, Fannie Mae favors Owner-occupant offers, so if you falsely sign that document (whether it's renting or flipping you're still not owner occupant) - you and your agent will be each fined! Not worth it.
- Danny Tseng, "DannyTseng"
- Contributions:37
I ran into this situation just a few months ago with a client looking to purchase a Fannie Mae home as a rental with cash. To make it legit, all you need to do is wait till the First Look period of 15 days is over and submit your offer as an investment offer. Even though you do this, you are still obligated to sign the 'Owner Occupant Certification' as it is a standard form that goes out in all Fannie Mae addenda. What I did with my client was I crossed out the words that said my client 'will' intend to live in the property to 'will not' live in the property.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
I was told here in Las Vegas, that Fannie Mae will send an investigator 30 days after close of escrow to verify who is living in the property. If it is not owner occupied, there might be complications.
- Suberry
- Contributions:4
How about if I live in the house yet still have a roommate. Would that be considered owner occupant, even though there will be someone living in the house with you?
- Michael Emery, "MikeEmery"
- Contributions:7298
If you are planning to use the home as your primary residence (you're going to live there) then it would be considered owner occupied. Fannie Mae wouldn't have any restrictions about having roommates as many 1st time home buyers probably use room mates to make the mortgage.
Is the property past the 15 day 'First Look" provision? I see you first asked this question on June 3d.
Is the property past the 15 day 'First Look" provision? I see you first asked this question on June 3d.
- David Cooper-Las Vegas, "LasVegasRents"
- Contributions:281
Your name should be on the mailbox and the utilities should be in your name even if you have a roommate.
- Suberry
- Contributions:4
When I made the offer, I didn't know the home had owner occupied restrictions. It was within the 15 day period. I couldn't risk letting it go back to the market since it had multiple offers. Initially wanted to rent it out, but now I would not mind living there if I'm able to rent out the basement. I plan on keeping utilities and mail in my name.
Thank you all for your responses...
Thank you all for your responses...
- mason10510
- Contributions:6
Question-
My sister needs a house, we found a Fannie Mae. Her name is on the contract with my husband's ( since we are floating her the cash to purchase) since they are both on the contract, does that mean it is not considered owner occupied? or it counts?
My sister needs a house, we found a Fannie Mae. Her name is on the contract with my husband's ( since we are floating her the cash to purchase) since they are both on the contract, does that mean it is not considered owner occupied? or it counts?
I'm buying a Fannie Mae property all cash...
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