Wednesday, April 27, 2011

3.5% in Closing Cost Assistance Through June 30, 2011!

Been struggling to purchase a home in today's market? Have you considered purchasing a Fannie Mae foreclosed properties as part of the HomePath program? The HomePath Program was enacted early in 2009 to deal with the growing number of Fannie Mae's foreclosed properties. The HomePath Mortgage program has some great benefits - one being the First Look Initiative - which helps protect buyers from having to engage in bidding wars against investors for the first 15 days on qualified HomePath properties. Another benefit is the reduction in down payment for earnest money deposits for HomePath Mortgage properties. Owner occupants can put down as little as 3% and investors 10%. Also, there is no lender requested appraisal and private mortgage insurance (PMI) is not required. Lastly, Fannie Mae is now offering up to 3.5% in closing cost assistance on all homes where an initial offer was submitted on or after April 11, 2011 and closes by June 30, 2011.

 Here is everything one needs to know:
(Courtesy of
The HomePath property buyer must meet the following qualifications to be eligible for 3.5% assistance:

•Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.

•The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.

•The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.

•Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.

•Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.

•If a buyer's total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

Now that you know - let's find a great HomePath Property and an approved lender together! Call today (818) 516-7387