Mortgage giant Fannie Mae is resurrecting an incentive program meant to speed along sales of their sizeable REO inventory. The program, which offers homebuyers up to 3.5 percent financial assistance for closing costs, applies to Fannie Mae REO properties that close before the June 30th deadline.
The incentive is a repeat of a similar incentive program run in 2010, which was introduced as an effort to stabilize neighborhoods in areas affected by the foreclosure crisis. As in its previous incarnation, buyers must purchase a HomePath home as their primary residence, and must specifically request the incentive upon submission of their initial purchase offer. Unlike 2010, this year’s program does not include cash bonuses for buyer agents in all states.
HomePath, which is Fannie Mae’s REO disposition arm, sells homes with special financing options and generous terms, such as a minimum 3 percent downpayment, and no mortgage insurance. HomePath homes are also available with special renovation financing, that allows borrowers to include 35 percent of the home’s estimated completed value in their initial mortgage. The renovation financing is available for properties needing light to moderate renovation, with maximum funding capped at $35,000. Interested buyers should visit HomePath’s extensive website at HomePath.com, which includes property descriptions, photos, and school district information.
Fannie Mae’s announcement of the program included a caveat that offers submitted after May 15th are unlikely to close in time for the June 30th incentive deadline, which, Fannie Mae said, is a firm closing date for this iteration of the program.
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