Frederick County Short Sale Blog | Homes for Sale in Frederick Md

Fannie Mae Offers 3.5% Closing Cost Assistance on HomePath Approved Homes

Fannie Mae is trying to get the foreclosed homes they own off their books.  They want to make it easier for buyers to purchase these homes by giving up to 3.5% of the purchase price in closing cost help.  The offer is good through June 30, 2011 for all Fannie Mae HomePath Loans.

What is a HomePath Loan?  

Fannie Mae owned REO's are eligible for financing called HomePath.  Homes that are approved are eligible for special financing for light to moderate renovations.  A HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance.   

Not all lenders do HomePath loans.  GMAC is approved to do them, give us a call for a list of approved GMAC lenders in the area.

The HomePath property buyer must meet the following qualifications to be eligible:

• 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. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
• The loan 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.

To find out more about Fannie Mae's HomePath Mortgage, see their website.

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The Highland Group