Fannie Mae Announces New 3.5% Closing Cost Incentive

Fannie Mae is launching a new incentive which offers closing cost assistance for buyers and a bonus for selling agents. Designed to help more buyers purchase a HomePath® property-as well as promote HomePath and increase sales-the incentive is available upon request and will run from June 14 - October 31, 2011 . See below for incentive details and the terms and conditions and review the process overview, FAQs and promotional flyers attached to this communication.

Details

  • 3.5% closing cost assistance to buyer. Owner occupants purchasing a HomePath property can receive up to 3.5% of the final sales price to be used toward closing cost assistance.
  • $1,200 Selling Agent bonus. A $1,200 bonus is being offered to selling agents who represent an owner occupant and meet the eligibility criteria below (all states).
    Terms & Conditions

    • Buyer and selling agent incentive must be requested at the initial offer submission.
    • Initial offer must be submitted on/after June 14, 2011 (incentive effective date).
    • Property sale must close on/before October 31, 2011. No exceptions will be made to this deadline. (Note: Initial offers submitted after September 15, 2011 may not close by the incentive deadline of October 31, 2011.)
    • Owner occupants only:

      • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% of the final sales
        price towards closing cost assistance. (Second homes and investment properties are excluded.)
      • Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum (available on the HomePath
        Resources page on efanniemae.com).
      • Only selling agents representing owner-occupant buyers purchasing a HomePath property may receive a bonus.
    • No bonus will be given for investor purchases.
    • Sales closed via the retail channel are eligible, including those utilizing public funds. Pool and auction sales are ineligible
    • Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
    • Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible.
    • Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.
      Financing

      • Buyers should consult their lender for guidance. In general, applying the 3.5% incentive to closing costs will be considered a Seller Contribution and is subject to the financing caps for the mortgage product. The amount must be reflected on the HUD-1.
      • Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.

Post a Comment