Fannie Mae, the Federal National Mortgage Association, has revived its HomePath buyer incentives program, which provides assistance for paying closing costs on the purchase of foreclosed homes.
The program requires the purchasers to actually live in the foreclosed homes they buy, so do not expect assistance if you are an investor looking to buy, renovate, and flip houses without living in them. Those who do live in the homes are eligible for up to 3.5 percent closing cost assistance on homes that close on or before June 30.
In addition to closing assistance, properties under the HomePath program are also eligible to pay as low as 3 percent on down payments and receive financing for renovation projects.
“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, Fannie Mae executive vice president.
Home buyers can visit homepath.com to search for properties that are eligible for HomePath. The website, powered by foreclosure.com search technology, provides a map interface and the ability to search by state, county, city, zip code, price, and house size. Entries include information regarding cost, home type, size, utilities, HOA fees, property taxes, schools, description of condition, and several photos. You can also learn more about HomePath and get tips about purchasing homes.
In addition to the home buyer incentives, Fannie Mae announced it will offer $1,000 cash bonuses to buyers' agents in Washington and California, if the clients purchase and close on a HomePath property on or before June 30. For more information and incentive details, visit the Fannie Mae “Special Offers” page.