Fannie Mae offers closing costs to foreclosure buyers

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Last week, government-run Fannie Mae (FM) announced it would pay for closing costs on purchases of foreclosed homes in its inventory by qualified buyers. That inventory amounts to nearly 50,000 properties.

With so many buyers taking advantage of tax credits, coupled with low mortgage interest rates, Fannie Mae is hoping to clear away some of that vast inventory and help home buyers in the process.

The largest U.S. mortgage finance company is offering as much as 3.5 percent in closing cost assistance or an equal amount on the purchase of new appliances. Properties have to be pre-qualified before an offer can take place. Fannie Mae’s inventory is listed on, a website created by the lender to sell its foreclosed homes. The offer is good through May 1, 2010.

Fannie Mae sold 89,691 foreclosed homes during the 3rd quarter of 2009. Terry Edwards, executive vice president of credit portfolio management for FM, said in a statement, “Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover.”

Posted by Sharon Walker


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