Fannie Mae has launched a special offer for buyers who purchase a Fannie Mae owned home. Purchasers will qualify for up to 3.5% in closing cost assistance provided they meet the following qualifications:
- Buyers submit the initial offer after April 11, 2011 and close by June 30, 2011.
- Only buyers purchasing a HomePath property as their primary residence may receive the closing cost incentive. Second home purchasers and investors are excluded from the incentive.
- Buyers are required to sign documentation attesting to their intention to reside in the property, otherwise known as the Owner Occupant Certification Rider.
- If a buyer’s total closing costs do not reach 3.5% of the purchase price the difference will not be credited to the buyer.
All Fannie Mae owned properties are available to be viewed on http://www.homepath.com/ . These properties qualify for HomePath Mortgage financing which offers buyers the option of purchasing a home for only 3 percent down. Homes that require renovations are available to be financed through HomePath Renovation Mortgage providing buyers the opportunity to roll in the cost of the homes’ renovation project into their loan.
This latest incentive is a win-win for both parties. Traditional buyers face a tough road obtaining financing as banks have clamped down on available loans. HomePath financing offers buyers an alternative mortgage source and, albeit, temporary closing cost incentive. Fannie Mae hopes that this incentive will persuade droves of buyers to purchase a Fannie Mae owned home, thereby reducing its growing inventory of properties.
The temporary incentive will give traditional buyers an opportunity to take a hard look at Fannie Mae owned homes and possibly be swayed to purchase one given the allure of free cash. Regardless of the incentive; buyers who purchase homes now, with the intention of staying put for a few years, will do wonders for every micro market. Does Fannie Mae realize that it’s attempting to systematically stabilize prices throughout the nation? Whether you are a fan or foe of this government entity, you’ve got to give them credit for trying!