3.5% Buyer Incentive on HomePath®

HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.

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 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.

Note that this incentive will be clearly identified on the purchase contract, and these loans must close by June 30, 2011.

Another important fact is that no appraisal is necessary when buying a fannie mae owned home through the Homepath program. That could save the buyer as much as $450 depending on the lender/amc.