With its financial incentives that helps buyers close on a Fannie Mae HomePath REO property about to expire at the end of this month, the government-sponsored enterprise has extended the program through Oct. 31 with an additional bonus.
To spark more interest in its massive holdings of foreclosed properties, Fannie Mae is still offering to cover up to 3.5% of closing cost assistance for homeowners who close on a house by the end of October. At the same time, selling agents representing an owner-occupant buyer will also receive a $1,200 bonus if the property closes by the deadline.
The incentive must be requested in the initial offer from now until the last day in October. Investor sales are not eligible for the incentive.
Buyers receiving closing cost assistance must certify that they will be owner occupants.
Fannie Mae said the incentives are part of its commitment to support homeownership and neighborhood stabilization in order to help the housing market recover. The incentives are available on sales to buyers who will reside in the home as their primary residence.
Through its HomePath program, Fannie provides low-downpayment financing on sales of REO properties with no requirements for mortgage insurance or appraisals. HomePath properties include single-family homes, condominiums and town houses.
“Our previous incentives have been effective in securing owner occupants for these properties,” said Ed Neill, senior vice president fro credit loss management at Fannie Mae. “By encouraging homebuyers who will make these properties their long-term home, these expanded incentives will help to stabilize communities.”