Feb 26, 2014
Fannie Mae offering 3.5% cash incentive on its REO properties
26 Feb 2014
Posted by Andrew Kantor
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 HomePath.com 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.