HomePath Property Buyers Receive Up to 3.5% in Closing Cost Assistance

Fannie Mae has once again upped the ante to encouragernhome buyers to purchase, and real estate agents to market its real estated ownedrn(REO) properties.  It is estimated thatrnFannie Mae and Freddie Mac, the two government sponsored enterprisesrn(Enterprises) currently in conservatorship, own a combined 191,000 propertiesrntaken through foreclosure. </p

Fannie Mae markets its REOrnthrough a program called HomePath Properties. rnUnder the new incentive program, owner-occupantsrnand public entities that buy a HomePath Property between now and the end of thernyear can receive up to 3.5 percent of the purchase price in closing costrnassistance.  The funds can also be usedrnto purchase a home warranty.  Propertiesrnbought from pools, at auction, or by investors are not eligible.  The sale must close within 60 days ofrnacceptance of the offer and no later than December 31, 2010.  The incentive must be requested in therninitial offer.</p

Buyers are advised to check withrntheir lenders.  Some funding now allow arnseller to provide a maximum of 3 percent of the purchase price as an incentivernand in such cases, the extra 0.5 percent cannot be redeemed by the buyer in anyrnother form.    </p

HomePath properties are generallyrnmarketed through real estate agents and any selling agent representing a buyerrnoccupant who purchases a property that closes by December 31 will receive, inrnaddition to the agreed commission, a $1,500 bonus.  The agent must request the bonus whenrnsubmitting the initial offer.</p

Some HomePath Properties are alsorneligible for HomePath mortgage financing or a HomePath renovationrnmortgage.  These loans have down paymentsrnas low as 3 percent which can be funded by a gift, do not require mortgagerninsurance, and carry flexible mortgage terms including lower creditrnrequirements.  These loans are alsornavailable to investors.  </p

“Morernthan eighty-seven thousand families have purchased HomePath® properties in thernfirst half of 2010-nearly double the number of Fannie Mae foreclosed propertiesrnsold in the first half of 2009,” said Terry Edwards, Executive Vice Presidentrnof Fannie Mae’srnCredit Portfolio Management.  “We continue to look for ways to stabilizernneighborhoods and offer incentives to qualified buyers who will occupy thesernproperties over the long-term and help support their communities.”

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