Fannie Mae (FNMA/OTC) announced it is extending the 3.5 percent closing cost assistance incentive for HomePath® properties purchased during the FirstLookTM period in 27 eligible states. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase a home without competition from investors. The FirstLook period is in effect for the first 20 days a property is on the market.
“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 homebuyers,” said 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.”
To be eligible for the incentive, the initial offer must be submitted by April 30, 2014, and close on or before June 30, 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.