Cash Incentives for Home Buyers

Fannie Mae is offering cash incentives to some home buyers in an effort to reduce it’s inventory of foreclosed homes.  It is offering qualified owner-occupant purchasers cash incentives toward closing costs of 3.5% of the purchase price on HomePath properties.

  • Buyers need to submit their initial offer no later than March 31 and close by May 31.
  • Go to www.homepath.com to see the properties available.
    • There are more than 2,300 properties in California with  870 listings are available in Los Angeles, Orange, Riverside, and San Bernardino Counties.
  • To ensure buyers get a chance to bid on the properties without competition from investors Fannie has instituted “First Look”.
    • This gives owner-occupant type buyers the first 20 days after listing to put in bids. The new 3.5% closing costs offer is available only during active First Look periods from mid-February through March and bidders have to indicate upfront they they want to be considered for a closing cost discount and complete a certification form.
    • NOTE — Bidders do not have to be first-time home buyers.
  • Properties are sold “as-is” – but symbols within the website can tell you if there has been work done.
    • Home Depot symbol next to property listing tells you that there have been repairs made by contractors of Home Depot.
    •  Hammer & Roof symbol next to the property listing tells you that there have been repairs made by independent contractors.

We offer HOMEPATH financing. Some key things to know:

  • 95% Loan To Value is available on Owner Occupied One Unit Properties
  • No appraisal is required
  • No mortgage insurance is required
  •  Although it will not qualify for the closing cost incentive – Non-Owner Occupied properties can be closed on HomePath with up to 90% Loan To Value
  • Down payment can be all gift for Owner Occupied properties regardless of Loan To Value

Please know we are also currently offering a Community Outreach Price Incentive for qualified borrowers and census tracts.

We are here to assist you take full advantage of these incentives. 

Please contact us today for more information.

For a copy of the LA Times article on the Fannie Mae incentive, please click here.