Big news from Fannie Mae last week. Fannie Mae will pay the closing costs on any Fannie Mae REO (Real Estate Owned, or in short, foreclosed homes owned by Fannie Mae) through May 1, 2010. Below is the official news release from Fannie Mae:
January 28, 2010 Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® PropertiesIncentive Part of Ongoing Effort to Stabilize Neighborhoods WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.
“Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help,” said Terry Edwards, Executive Vice President of Credit Portfolio Management. “Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home.”
Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.
Here is a link to Fannie Mae’s Homepath website as well as their FAQ’s about buying a home through Homepath.
As always, be sure to have your ducks in order and be pre-approved for your loan before you start shopping for a home. Your purchasing position will be much stronger and with home like this, time is of the essence and being pre-approved gets the hard stuff out of the way up-front.
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