Fannie Mae Offers Closing Cost Assistance and Appliance Incentive

Welcome Back Readers!   It’s been a busy month in real estate, so many things happening both locally and nationally it seems everyday there is something new!  That’s actually the becoming the normal state of affairs nowadays and I don’t mind as it gives me lots of things to write about!

I wanted to let you know about a program announced today by Fannie Mae.  Fannie Mae has a little problem, namely 50,000 homes they now own through the foreclosure process and they are looking to move them.  You can see a list of what’s there at www.homepath.com (there are 19 Fannie Mae Foreclosures in Lancaster County Pa as of today).

That’s not the announcement though, the announcement is that Fannie Mae is now offering 3.5 % of the home’s purchase price as an incentive to buyers!  Read on after the jump to find out more!

Here is the deal as per the details on homepath.com:

Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on this site 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 Fannie Mae; or
  • A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 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

Now, the one caveat is that the lender for the buyer must approve the use of this incentive, but most lending programs allow the use of seller assistance with closing costs.  This is an exploding offer though, it’s gone if you don’t buy before May 1, 2010.

I think this is a great program, but I am definitely seeing a contradiction here.  Just 9 days ago HUD announced changes to FHA lending (read about those changes HERE ) that lowers the amount of allowable seller assitance to 3% starting in the summer of 2010.  Notice how the Fannie Mae incentive runs out at the beginning of May?  How about how the tax credit deadline is April 30th 2010 ( read about it HERE )?  My post in December about the expected rise in interest rates ( read it HERE ) tells you about how that will be happening in late spring as well.

So, on the one hand we have the government telling us that buyers need more of their own money in the game (go back to the FHA post)  and on the other hand we have them creating programs to enable buyers to buy with less money in the game.  See the contradictions here?  Is it any wonder why people are confused and the nationwide market is all over the place?

Don’t get me wrong, this program is great, I think Fannie Mae needs to sell these homes and I will be happy to help anyone take advantage of this offer (call me if you would like to!) but Uncle Sam needs to get it together and decide what they want their message to be.

As always, I’d like you to be part of the conversation, so if you like what you read here please comment, forward The Lancaster Connection.com to your friends, subscribe and if you have questions, need real estate advice or want to buy or sell a home, you can call or text me at 717-371-0557, email me at Jason@JasonsHomes.com or contact me at the office at 717-490-8999!

Your Friend in Real Estate,

Jason Burkholder

Weichert, Realtors – Engle & Hambright

Search for Lancaster County Homes for sale at www.JasonsHomes.com by clicking here!

Want to see what’s happening to home prices in your neighborhood?  Go to www.RealEstateCrystalBall.com !