Fannie Mae Offers Purchase Incentive

By:: Peter King | April 11, 2011

Fannie Mae is offering a short-term incentive for homebuyers, offering credits of up to 3.5 percent of the purchase price toward the closing costs on any of the foreclosed homes in its inventory.

The window for taking advantage of the program is tight. To qualify, purchase offers must be submitted no sooner than today, April 11 and the sale must close by June 30.

The offer applies to Fannie Mae “HomePath” properties, the company’s name for properties it has acquired through foreclosure. To qualify, purchasers must reside in the home as their principle residents. Investors are excluded, but repeat buyers are not.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover," said Terry Edwards, a Fannie Mae executive. "Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance."

The Fannie Mae HomePath program already offers purchasers a number of other incentives, including down payments of as little as 3 percent. There is no requirement for a lender-requested appraisal and mortgage insurance requirements may be waived as well.

Buyers may also be able to get up to $35,000 in renovation expenses included in the loan on some HomePath purchases. Some limitations on condominium purchases may be waived as well.

Fannie Mae-owned foreclosed properties are listed at www.HomePath.com. Most listings include detailed property descriptions, including photos, school and community information, and more.

For more information, see the “Special Offers” and “HomePath Financing” sections on www.HomePath.com.

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