Fannie Mae announced a program called “First Look” which will help First Time Home Buyers compete with investors for foreclosed homes in San Jose and rest of the Bay Area.

Under the program, dubbed First Look, Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed home is on the market.

Many investors can move faster on home purchases because they are able to pay cash and don’t have to wait to qualify for a loan and get an appraisal. If you are a First Time Home Buyer, a lot of you would be going through the hassle of making offers on several properties and often losing bidding wars to investors.

In addition to the 15-day head start, home buyers using Neighborhood Stabilization Program funds, HOME Investment Partnerships Program funds, local housing trust funds, or charitable foundation funds may also qualify for reduced deposit requirements of as low as $500, reserved contract periods in which buyers can renegotiate their offers, and up to 45 days to close, up from the usual 30 days.

A Freddie Mac spokesman said that company has similar pilot programs and is helping owner-occupants pay closing costs.

Both the companies said these types of buyers would better stabilize neighborhoods.

If you are a first time home buyer, do you think this program gives you a better chance to get your offer accepted? Feel free to post your comments below.

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