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Fannie Mae announced Thursday it is extending the 3.5 percent closing cost assistance for HomePath properties purchased during the First Look period in 27 states. During the FirstLook period, which is in effect for the first 20 days a property is on the market, an owner-occupant or public entity buyer is able to submit offers on HomePath properties without competition from investors.
Originally, the incentive was set to expire on March 31, 2014, but was extended due to a strong interest from buyers.
"We have received a strong response from the incentive since it went into effect on February 14, and we are happy to extend the offer to even more homebuyers,” said Jay Ryan, VP of REO Sales. "With the unusually cold and extended winter season ending, we want to give people more opportunity to use the incentive to buy properties that they will call home."
Initial offers must be submitted by the deadline of April 30, 2014, to be eligible for the incentive. Sales must close on or before June 30, 2014. Buyers who qualify for the Fannie Mae incentive will receive up to 3.5 percent of the final sales price to pay closing costs.
The release noted, "In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option."
