Fannie Extends Closing Cost Incentive to Buyers

March 28, 2014

Due to strong buyer response, Fannie Mae has announced it will extend the deadline for an incentive program that allows home buyers to receive up to 3.5 percent in closing cost assistance on purchases of its HomePath foreclosed properties.

Home buyers now have until April 30 to submit offers on the REO homes, and transactions must close by June 30 to be eligible. Originally, the incentive applied for offers submitted by March 31 and transactions that closed before May 31.

The incentive offers qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In some cases, buyers may opt to use the savings to buy down their interest rate through upfront points, Fannie Mae notes.

The incentive, offered in 27 states, is part of Fannie Mae HomePath’s FirstLook program, which offers potential owner-occupants or public entity buyers the first 20 days after a property is listed for sale to submit offers without facing competition from investors.

“We have received a strong response from the incentive since it went into effect on February 14, and we are happy to extend the offer to even more home buyers,” says Jay Ryan, vice president of REO sales. “With the unusually cold and extended winter season ending, we want to give people more opportunity to use the incentive to buy properties that they will call home.”

The states eligible for the homebuyer incentives are: Arizona, Maryland, New Mexico, California, Massachusetts, Ohio, Florida, Michigan, Oregon, Idaho, Minnesota, Puerto Rico, Illinois, Missouri, Tennessee, Indiana, Nebraska, Virginia, Iowa, Nevada, Washington, Kansas, New Hampshire, West Virginia, Maine, New Jersey, and Wisconsin.

Source: Fannie Mae

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