Fannie Mae is bringing back its offer to help pay closing costs to move some foreclosed homes from its books into the hands of owner-occupants.
The agency said buyers of Fannie Mae-owned HomePath properties who plan to live in them can receive up to 3.5 percent in closing cost assistance if the sale closes on or before June 30. HomePath properties also are eligible for down payments of as low as 3 percent and renovation project financing. Investors are excluded from the program.
A similar program was used last year to lessen the government-sponsored entity’s inventory of foreclosed, repossessed homes. In its annual report, Fannie Mae said it repossessed more than 260,000 homes in 2010. HomePath listed 746 foreclosures for sale Tuesday in the city of Chicago alone.
“Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover,” said Terry Edwards, a Fannie Mae executive vice president in a statement. “Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home, so this is a great time for Fannie Mae to offer some assistance.”