FNMA (Fannie Mae) is offering up to 3.5% incentives* for buyers who purchase and close on a FNMA-owned home between January 28 and April 30, 2010. The largest provider of U.S. residential home funding is offering to subsidize closing costs on some homes as a way to help reduce housing inventory and minimize the impact on communities. Buyers purchasing foreclosure, deed in lieu of foreclosure, or forfeiture properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:

Closing costs;
The purchase of new Whirlpool® appliances by FNMA; or
A mix of closing costs and appliances, at the buyer’s discretion, up to a max. 3.5%.

To be eligible for this incentive:

Offers must be accepted on or after January 28, 2010
Property sales must close before May 1, 2010
Buyers must be owner-occupants, investors are excluded

*Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

Buying a home? Take Advantage of a Federal Income Tax Credit

New legislation was approved to extend First Time Home Buyer Credit for home owners through April 30, 2010 with a 60-day cushion beyond that date to complete closing. This broadens the benefits to existing home owners and now includes:

$6,500 tax credit for existing home buyers
$8,000 tax credit for first time home buyers
Increased income limits for individuals and couples

For more information about the Federal Income Tax Credit program speak with a lender, accountant or attorney to learn more about how this may apply to you.

Need help buying a home?

State and local housing authorities often have programs to help home buyers research and purchase a home. Programs can include counseling, down payment assistance, and more.

Neighborhood Stabilization Program (NSP)

Currently, some local housing authorities and housing non-profits have programs for home buyers that use HUD's Neighborhood Stabilization Program funds.

FNMA supports NSP and offers some concessions to streamline the purchase of FNMA properties for buyers using NSP funds. This includes:

Deposit Waivers - FNMA will waive the earnest money/deposit requirement for public entities using public funds to purchase a FNMA-owned property. Individual homebuyers using public funds to purchase a FNMA-owned property do not have to meet the full 5% earnest money/deposit requirement. Deposits can be as low as $500.
Reserved Contract Period - Upon receipt of an acceptable offer, buyers have the ability to renegotiate their offer after obtaining an NSP-required appraisal.
Extra Time for Closing - Buyer receives up to 45 days to close, 15 days more than is usually permitted for purchases of FNMA-owned properties.

First Look for FNMA Homes

First Look is designed to provide owner occupants and buyers using public funds a “first look” at FNMA homes. Under First Look, FNMA will only consider offers from owner occupants and buyers using public funds during the first 15 days a property is listed in the local multiple listing service (MLS). If the property is still for sale on the 16th day, investor offers may be submitted and will be considered. Ask a FNMA listing broker for more information.