Fannie Mae has some new incentives for people who purchase one of its foreclosed properties. Potential buyers can view Fannie Mae’s foreclosed homes on the HomePath Web site.
Help with mortgage closing costs
Fannie Mae is offering buyers up to 3.5 percent in closing cost assistance. To get the incentive you must have an initial offer in place between June 14, 2011, and Oct. 31, 2011. Initial offers made prior to June 14, are not eligible for the offer. Buyers and/or selling agents must request the incentive after submitting the initial offer. The closing for the home purchase must occur by the Oct. 31 date.The mortgage company also is offering a $1,200 bonus to selling agents who close on a property and meet all eligibility requirements.
Only individuals who purchase a HomePath property as their principal residence are eligible for the closing cost assistance. If you plan to use a property as a second home or investment property, you won’t receive help. Also, buyers who have closing costs that total less than 3.5 percent of the purchase price cannot receive the difference as a credit.
Getting a home mortgage
Check with mortgage lenders to find out if there are any restrictions on using the 3.5 percent incentive when financing with them. Some mortgage lenders might restrict the amount of the incentive to a lesser percentage so make sure you have this information upfront if you plan to buy a HomePath property. You can compare mortgage lenders here to find the right loan product.
HomePath mortgage loans
You could also finance your purchase with a HomePath Mortgage, which may offer a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. The down payment can come from your own savings, a gift, grant, loan from a nonprofit organization, state of local government or employer. The HomePath mortgage loan is available for primary residences, second homes and investment properties.
If you choose to purchase a HomePath property that needs repairs, you may be able to borrow a HomePath Renovation Mortgage. These mortgages, which include funds for the purchase and renovation, include low down payments and flexible terms. The renovation amount would be based on an appraisal “as completed” value.
Fannie Mae HomePath properties are located in a variety of neighborhoods. The selection includes single-family homes, town houses and condominiums. The selection includes newer and older homes, some of which may need repairs.
by Ethan Leak