Fannie Mae HomePath Program Helps Pay Closing Costs

February 14, 2014

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, 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.”

As published in Urban Turf – 2/14/14 – Lark Turner

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