HomeSteps: Freddie Mac First Look Initiative Extended to Second Home Purchasers

Effective August 1, 2011, Freddie Mac will offer second home purchasers the opportunity to purchase HomeSteps homes through the Freddie Mac First Look Initiative. The First Look Initiative supports Freddie Mac's mission to stabilize communities and support housing recovery through the creation of affordable home ownership opportunities.

This ongoing initiative offers owner occupant homebuyers, second home purchasers, 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.

Often it seems that when we tell obvious investors that only owner occupants may make offers during the 15 day period, they respond, tongue in cheek, "Sure I'm going to live in it!" It really isn't that simple. Buyers are required to sign an affidavit of owner occupancy (see below). By signing, buyers agree to move in as soon as possible after closing, and to occupy the property for at least one year. Failure to do so may constitute not only a breach of contract, but subject the buyer to criminal and/or civil liability. Agents are required to report fraudulent activity.