Fannie Offers Closing Cost Aid to First-Timers
Mortgage giant Fannie Mae announced a new program that allows first-time home buyers of its properties to receive up to 3 percent of the purchase price in closing cost assistance. On a $150,000 priced home, for example, buyers could receive up to $4,500 in closing cost savings.
Fannie Mae’s HomePath Ready Buyer Program requires eligible buyers to complete an online home buyer education course as well as purchase a HomePath property – the branding that Fannie Mae uses for the foreclosed properties it owns.
"Purchasing your first home can be an overwhelming process," says Jay Ryan, vice president of REO Sales at Fannie Mae. "We developed the HomePath Ready Buyer program to provide first-time home buyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process. Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of home ownership."
The education course buyers are required to take covers the responsibilities of owning a home and the home buying process. The course includes nine, 30-minute sessions and is offered exclusively online.
To be eligible for the program, buyers must:
- Complete the online HomePath Ready Buyer training course on www.homepath.com and receive the Certificate of Completion.
- Must be a first-time homebuyer (who has not owned a property in the past three years) and who has plans to reside in the property as the primary residence. Auction, pool and investor sales are not eligible.
- Make their request for closing cost assistance at the initial offer, submitted on or after April 14, 2015.
Visit the Fannie Mae website for additional information about the HomePath Ready Buyer Program.
Source: “Fannie Mae Launches HomePath Ready Buyer Education Program for First-Time Home Buyers,” Fannie Mae (April 14, 2015)