New incentives for homebuyers
Fannie Mae offers help with closing costs to move its inventory of foreclosed homes.
This post comes from partner blog The Dough Roller.
Fannie Mae just announced new incentives for homebuyers (and Realtors) that I thought were worth passing on. Fannie Mae, a government-sponsored enterprise, adds liquidity to the mortgage market by buying certain home loans. By buying up loans, Fannie Mae puts money back into the mortgage market so banks can lend more money to homebuyers.
With the downturn in the home market, however, has come a record number of foreclosures. To help move this inventory, Fannie Mae announced two incentive programs, one for homebuyers and one for Realtors.
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- Homebuyers. Through Oct. 31, Fannie Mae is offering homebuyers up to 3.5% of the final sales price to put toward closing costs. This incentive applies only to buyers who plan to live in the home. Investors do not qualify.
- Agents. Fannie Mae is offering a $1,200 bonus to real estate agents who represent the owner-occupant buyer. (Again, sales to investors do not qualify.)
As you would expect, there are terms and conditions that must be met. You can find all of them at HomePath.com, which is a website run by Fannie Mae to sell its foreclosure inventory. Here are some of the more noteworthy conditions (but be sure to check out all of them):
- The buyer or the agent representing the buyer must request the incentive upon submission of the initial offer.
- The initial offer must be submitted on or after June 14.
- The sale must close on or before Oct. 31. No exceptions will be made to the deadline. (Note: Initial offers submitted after Sept. 15 may not close by the incentive deadline of Oct. 31.)
- Buyers must be purchasing a HomePath property to use as their primary residence to receive closing-cost assistance. Second homes and investment properties are excluded from the incentive.
- Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
Other Fannie Mae incentives
Fannie Mae has other incentives for homebuyers as well. For example, Fannie Mae offers what it calls HomePath mortgages and HomePath renovation mortgages. You can get details on both here. One of the main features of these incentives is a relatively low down payment.
Searching the HomePath inventory of homes is easy. You can find the search page at HomePath.com. With today's mortgage rates and home values at historic lows, it's a good time to buy. And having purchased several foreclosures as investments, I can tell you that you'll find some very nice homes to consider as your personal residence.
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