It is an initiative that allows an owner occupant purchaser the first option to purchase Freddie Mac owned properties—along with select non-profits—an exclusive opportunity to purchase HomeSteps homes prior to competition from investors—through the Freddie Mac First Look Initiative program.
The First Look Program is an on-going initiative that offers owner occupant homebuyers, Neighborhood Stabilization Program (NSP) grantees and non-profits engaged in community stabilization efforts the ability to purchase HomeSteps homes during their initial 15 days of listing without competition from investors.
The initiative supports Freddie Mac’s mission to stabilize communities and support housing recovery through the creation of affordable home-ownership opportunities in many communities across the United States.
How You Can Benefit From The Initiative If You Are An Owner/Occupant Purchaser?
During the first 15 days a home is listed for sale in the Multiple Listing Service (MLS), HomeSteps will consider purchase offers from owner-occupants, public entities or their designated partners or non-profits only.
Those who intend to purchase the property for investment, may submit offers to the listing broker and HomeSteps will consider them after the initial 15 listing days have expired!
This assumes the house hasn’t sold during the initial 15 day owner/occupancy period. Keep in mind that many sell during the first 15 days—particularly those that show well.
All HomeSteps homes—listed on or after September 17, 2010, are eligible for inclusion in the Freddie Mac First Look Initiative program.
As a homebuyer you will know if a home is included in the program based on marketing that can be found on the property—or you may contact your selling agent or the listing broker with questions about the eligibility of a home.
This information is also normally included in MLS listing information.
How can a homebuyer determine the number of days the home has left under the initiative?
Buyers must have their broker check MLS or contact the listing broker to determine how many days are left.
As a buyer—you must prove that you are buying the home as your primary residence! As a buyer—you and your selling agent must sign an affidavit affirming that you will occupy the home as your primary residence.
If you—or other parties fraudulently sign the affidavit you may be subject to criminal or civil liability.
Multiple offers received during the 15-day initiative time period are processed in the same manner as a normal transaction using the multiple offers procedure.
Second home purchasers do not qualify for the Freddie Mac First Look Initiative—however their contract would be considered if the property does not sell during the 15 day first look period—in the same manner as the rules for investors.