Fannie Mae is offering buyers up to 3.5% in closing cost assistance on HomePath® properties. HomePath homes are REO’s that have already been taken back by Fannie Mae and put on the market at a certain price as HomePath eligible. I did a complete breakdown of the HomePath on a previous post but here is a quick reference…
A HomePath home may offer the best financing possible today. The loan only requires a 3.0% down payment, instead of a 3.5% down payment as required by FHA. There is also no PMI or mortgage insurance required, a huge savings to the new homeowner. Better yet there is no appraisal so the buyer saves even more in closing costs and the escrow can close faster. Given this 3.5% closing cost assistance buyers can get their new home with only 3.0% down, no appraisal fee, and have the seller – Fannie Mae – pay 100% of the closing costs (if you’re paying more than 3.5% in closing costs it might be a good idea to call another lender)! Even if there was PMI required it would still be a great deal.
To be eligible for this incentive:
- Initial offers must be accepted on or after September 23, 2010;
- Property sales must close on or before December 31, 2010, and close within 60 days of offer acceptance; &
- Buyers must be owner-occupants and confirm that the property will be used as their primary residence by completing a certification form (investors are excluded)
Fannie Mae says that this incentive reinforces their commitment to stabilizing communities and assisting buyers. For more information about the incentive read the press release, or give me call/e-mail…