Friday, May 7, 2010

3.5% HomePath Incentive is Extended

Fannie Mae has extended the incentive program they are offering to buyers of HomePath homes. A HomePath home is a house that Fannie Mae now owns because the previous owner went into foreclosure.

Fannie will pay 3.5% of the purchase price towards the buyer's closing costs. The 3.5% can also be used to buy appliances (refrigerator, stove, etc.). Fannie Mae buys the appliances from Whirlpool and installs them for the buyer.

The program was set to expire on April 30, but has been extended to June 30. As long as the sales contract was signed after January 28, 2010 and the deal closes by June 30, 2010, the 3.5% incentive is in effect.

The incentive is only available for people who intend to occupy the house. Second homes are included, as long as they are owner-occupied. No investment properties are allowed.

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