3.5 Percent Offered by "Fannie" for Home Buyers Purchasing an REO

3.5 Percent Offered by "Fannie" for Home Buyers Purchasing an REO

According to news just released by the government owned mortgage financier, Fannie Mae is offering 3.5 percent in seller assistance to the borrower, if the borrower purchases one of its previously foreclosed HomePath properties.

The offer is good for any owner-occupant who purchases an REO (Real estate owned) home listed on Homepath(dot)com.  The purchase must be completed by May 1st of this year.

According to Fannie Mae, the 3.5 percent of the final sales price may be used toward either for closing costs or the buyer's choice of appliances.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover" said Terry Edwards, Executive Vice President of Credit Portfolio Management, in a press release.  He went on to state that "many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help."

I will note here, that many of the Fannie Mae-owned properties also offer special financing, allowing borrowers to purchase a home with as little as three percent down.

Information provided by Richard Shreeve, Mortgage Market Weekly