Fannie Mae offers up closing cost assistance

For a limited time, mortgage giant Fannie Mae will give eligible homebuyers in 27 states up to 3.5 percent in closing cost assistance when they purchase a HomePath property during the property’s “First Look” period.

During that 20-day period, buyers who either plan to be owner-occupants or are part of a public entity are able to submit offers on HomePathproperties — foreclosed homes owned by Fannie Mae — without competition from investors.

“This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, Fannie Mae’s vice president of REO sales, in a statement.

“Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.”

To be eligible for the closing cost assistance, an initial offer on a home must be submitted between Feb. 14 and March 31, and close on or before May 31, Fannie Mae said.

Among the states where the assistance is available are California, Florida, Michigan, Illinois, Ohio and New Jersey. It is not available in Texas or New York, among other states.

Source: Fannie Mae