Purchasing a Home? Fannie Mae would like to pay your closing costs!

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Purchasing a Home? Fannie Mae would like to pay for your closing costs.

Fannie Mae (FNMA) has announced a limited time offer to provide closing cost assistance on some of the homes they are selling.

In select states including Washington,  FNMA is offering an incentive of up to 3.5% of the sales price to buyers who request the incentive when submitting their initial offer during FNMA’s First Look period. First Look is FNMA’s effort to give owner occupant home buyers a period of time (typically the first 20 days the home is listed for sale) to purchase the home without competition from investors.

This closing costs incentive should be sufficient to cover your costs in most scenarios. In fact, in most cases there should be enough left over to potentially buy down the interest rate.

Key Program Highlights:

  • Principal residences only – you need to occupy the home. You can’t take advantage of this deal if you are going to rent out the home or use it as a vacation home
  • Not Available in all states, but Washington is Eligible
  • Property must be in the First Look period
  • Must have a signed purchase contract by March 31, 2014 and must close by May 30, 2014
  • The incentive is for closing costs only. It can’t be used for the down payment and you won’t receive cash back if the incentive exceeds the actual costs

Where do I find the homes that are eligible for the special deal?

Finding these can be a little tricky in that not only does the property need to display one of the special HomePath logos (see below) but the home must also be in the First Look period which is the first 20 days after it was offered for sale.

For a complete list of Fannie Mae foreclosed properties in your area, send me a request at m.mullin@fpfmail.com and I’ll email you the list.

What’s the disadvantage to using this program?

Since you can have your closing costs paid by this program you may be wondering why you wouldn’t want to take this deal. Your decision to buy a home is usually based upon how much you love the neighborhood and whether the features of the home meet all of your needs. If you keep your search only to homes that are eligible for the closing costs assistance it’s going to severely limit your options and it’s possible none of the homes will meet your needs.

How do I find out if I qualify for the special incentive program?

Qualifying for a loan on one of these properties is identical to any other. Submit an application, supply your financial documentation and we can quickly determine what loan amount you would qualify for. If you have questions, just give me a call at 509-252-9151.  By Michael Mullin

About Facebook - rebecca.mullin.16

Our passion is helping borrowers and real estate agents who want their lender to have the knowledge and experience to close on time and without last minute surprises. Clients receive weekly loan status updates; and on the rare occasion you don't reach us immediately, messages are always returned timely. Unlike most lenders, we don't hand off your application to an assistant or back office support person, you will work directly with us. Taking advantage of expanding technology allows our borrowers the flexibility and convenience of electronically signing documents and conducting business by phone, fax, email and mail. Borrowers regularly come to us for a 2nd opinion after being denied at one of the big banks or credit unions. With a firm understanding of loan guidelines and taking the time to work through any issues, a previously denied loan can become an approved loan. We are a unique husband and wife team originating home loans throughout the states of Washington, Oregon and California. We offer FHA, 203(k), VA, USDA, Conventional, Reverse Mortgages, Home Path, and the Section 184 Indian Home Loan Guarantee Program. Our dedication to 1) Educating our clients so they can make informed financial decisions, 2) Delivery of superior customer service and 3) A high degree of honesty and integrity is what sets us apart from other lenders. Michael is a Mortgage Banker & Broker with 23 years' experience helping families purchase and refinance Residential and Investment properties. Rebecca is our Loan Processor and Transaction Coordinator. She has a CPA and auditing background which is exactly the kind of attention to detail needed. We have been married for 24 years after meeting at CSU, Sacramento in 1985 where we both majored in Finance. Our family includes two teenagers, a daughter in high school and a son attending college. We enjoy hiking, snow shoeing, biking, fishing, backpacking and any other excuse to enjoy the outdoors with our family. Michael Mullin, NMLS #11911 and First Priority Financial, Inc., NMLS #3257 is Licensed by the Department of Business Oversight under the CRMLA. Equal Housing Lender. Washington Lic.# CL-3257 Oregon Lic.# ML-3337

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