Fannie Mae is offering to give some buyers of its REO properties a 3.5 percent cash incentive, but those buyers have to act quickly.

The company’s First Look program is designed to reduce its stock of properties by offering the 3.5 percent cash, which can be used toward closing costs — and is particularly helpful for first-time buyers.

Who’s eligible for the cash?

  • Only owner-occupant purchasers (i.e., not investors) are eligible.
  • The offer is good for the first 20 days a property is listed on Fannie Mae’s website; each eligible property has a little countdown calendar.
  • They must bid on the property by March 31, 2014 and close by May 31, 2014.

Potential buyers still need to shop for a mortgage, and lenders can take the 3.5 percent incentive into consideration. The homes on the HomePath site run the gamut in price and condition. We found, for example, a $65,900 three-bedroom home in Richmond, a $178,500 home in Newport News, and a $326,400 home in Suffolk.

Fannie’s program comes on the heels of Freddie Mac’s, which offers $500 and $1,000 incentives for buyer and seller agents of its REO homes.

Click here to read the details of the program.

Click here to find eligible property in Virginia.

Click here to read the L.A. Times article on it.