Fannie Mae extends 3.5% closing cost incentive

WASHINGTON – March 28, 2014 – Fannie Mae announced that it’s extending the 3.5 percent closing cost assistance incentive for HomePath properties purchased during the FirstLook period in 27 eligible states, including Florida.

 The FirstLook period gives owner-occupant or public entity buyers 20 days to submit an offer before real estate investors.

“We have received a strong response from the incentive since it went into effect on Feb. 14, and we are happy to extend the offer to even more homebuyers,” says Jay Ryan, vice president 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.”

To be eligible, an initial offer must be submitted by April 30, 2014, and close on or before June 30, 2014. The incentive offers qualified buyers up to 3.5 percent of the final sales price to pay closing costs. Buyers may also use the savings to buy down their interest rate through upfront points, resulting in additional savings over time. They can work with the lender of their choice.