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 firstname.lastname@example.org 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