Fannie Mae Launches New Incentive Program

Fannie Mae has announced that homebuyers may receive up to 3.5 percent in closing cost assistance when they purchase a HomePath property in 27 states during the FirstLook period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors.  Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days. “This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, VP of REO Sales for Fannie Mae. “Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.” To be eligible for the incentive, the initial offer must be submitted between Feb. 14, 2014 and March 31, 2014, and close on or before May 31, 2014. The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option.