Fannie Mae Announces Program That Could Cut Your Closing Costs

• February 14, 2014
• 2 Comments

by Lark Turner

Fannie Mae’s HomePath program just got another perk: for a brief period, eligible buyers can get up to 3.5 percent of the final sales price covered to help pay for closing costs.

Twenty-seven states, including Maryland and Virginia, are eligible for the closing cost coverage during the FirstLook period, according to a Thursday news release. The FirstLook period is generally the first 20 days that a property is listed on HomePath.com, Fannie Mae’s listings and financing site that aims to incentivize purchases of its foreclosed and short sale properties by owner-occupants, not investors.

The FirstLook period, recently extended from 15 to 20 days, is primarily time-driven, but also has certain buyer requirements; read more about it here.

Time is short to get the closing cost deal. Buyers have to submit an offer on a house between February 14 and March 31, and close by May 31, to get coverage. If buyers find a property that works for them in the timeframe, though, Fannie Mae points out that the benefits may be further reaching than closing costs: “In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time.”

This article originally published at http://dc.urbanturf.com/articles/blog/fannie_mae_announces_program_that_could_cut_your_closing_costs/8127

2 Comments

1. JES said at 5:51 pm on Friday February 14, 2014:
   Why do they do crap like this? Either make it a normal regulation or don't. I fail to see how it's remotely fair to allow a few lucky people, who happen to buying RIGHT NOW, to have this perk while no one else can.

1. Tom Welch said at 11:06 pm on Friday February 14, 2014:
   For clarification, this incentive is only available on HomePath.com properties - Fannie Mae's portal for their foreclosed (REO) properties.