Linked Documents:
Incentive
Process Overview
Buyer
Incentive Flyer
Selling
Agent Bonus Flyer
To encourage the purchase of HomePath properties, Fannie Mae will offer a 3.5% Buyer Incentive from September 23 to December 31, 2010. This email summarizes eligibility and includes an overview document and promotional flyers.
The Incentive
During the sale negotiation of a HomePath property, buyers will be offered an incentive of up to 3.5% of the final sales price to be used toward closing cost assistance, including a home warranty, if desired and available.
Eligibility
The HomePath offer, Buyer, and Selling Agent must meet the following qualifications to be eligible for the incentive:
- HomePath property sale must close on or before December 31, 2010 and within 60 days of offer acceptance.
- Only buyers purchasing a HomePath property as an owner occupant will receive
up to 3.5% of the final sales price towards closing cost assistance. The owner occupant certification document will be available on the HomePath Resources page of efanniemae.com by Wednesday, September 29.
- Only Selling Agents representing owner occupant buyers purchasing a HomePath property will receive a bonus of up to $1,500. To be eligible for an agent bonus, the initial offer must be submitted on or after the effective date. No bonus will be given for investor purchases.
Note: Offers
submitted after November 15, 2010 may be difficult to close by incentive
deadline of December 31, 2010.
Financing
Buyers should consult their lender for guidance.
In general, applying the 3.5% incentive to closing costs will be considered a Seller Contribution and subject to financing caps of Seller Contribution for that mortgage product. The amount must be reflected on the HUD-1.
Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will not be available to the buyer.
Eric P. Egeland, SFR, CDPE, e-PRO
Broker Associate
RE/MAX SUBURBAN
847.557.8552
NorthShoreREO.com
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