Fannie Mae Offers Assistance to Homebuyers Closing on Mortgages
Fannie Mae is offering buyers of its foreclosed homes help with mortgage closing costs.
Mortgage Closing Costs or Appliances
Homebuyers who purchase a HomePath property owned by Fannie Mae will receive 3.5% of the final sales price toward closing costs on a home loan or appliances. Homebuyers also can choose to apply the incentive to a mix of closing costs on a mortgage loan and appliances.
To receive assistance you must purchase a property listed on HomePath.com before May 1, 2010. Offers must be accepted on or after Jan. 28, 2010.
The HomePath Web site has photos of available homes and detailed property descriptons. Only properties purchased as your principal residence qualify for the program.
Reducing Inventory of Homes
”Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. 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,” Terry Edwards, Executive Vice President of Credit Portfolio Management, said in a statement.
Fannie Mae sold 89,691 foreclosed homes in the third quarter of 2009, according to the Washington Post.
Talk with Fannie Mae Listing Broker
People who are interested in getting a mortgage and with assistance from Fannie Mae should discuss their options with a Fannie Mae listing broker. Mortgage lenders can restrict how the 3.5% incentive can be used.
Fannie Mae Mortgage Help
Fannie Mae also offers financing on some homes. The agency offers mortgage loans with low down payments even if you don’t have the best credit. The home loans don’t require mortgage insurance or appraisal fees. The HomePath Renovation Mortgage is available to purchase and renovate homes.
The down payment for both types of mortgages must be at least 3% and can be funded by your savings, a gift, grant, or loan from a nonprofit, state, or local government, or employer.
Homebuyer Tax Credit
Homebuyers also can claim the First-Time Homebuyer Credit for homes purchased through April 30, 2010. They must close on home loans by June 30, to be eligible for the tax credit, according to the Internal Revenue Service.
First-time homebuyers are eligible for a tax credit up to $8,000. Existing home owners who have lived in their house for five consecutive years out of the past eight are eligible for a tax credit of up to $6,500.
Tags: home loans, mortgage, mortgage loans, mortgages
