Buyer and Buyer's Agent must meet the following qualifications to be eligible for the incentive:
- Buyer and/or Buyer's Agent must request the incentive at initial offer.
- Initial offer must be made on or after February 14, 2014, and on or before April 30, 2014.
- Property must be in an active First Look period.
- If an offer was made before February 14, the buyer/buyer's agent is not eligible for the incentive.
- If buyer/buyer's agent bust out of the existing offer to submit a new offer in order to be eligible for the incentive, the incentive will not be offered.
- HomePath property sale must close on or before the mutually agreed closing date, but not later than June 30, 2014.
- Only owner occupants (no second homes) purchasing a HomePath property may receive up to 3.5% in closing cost assistance.
- Buyers must sign the Owner Occupant Certification (available on homepath.com and the Public Lender Files in the Equator Library).
- Buyer's agents should request and note the incentive in Section 38 of the Purchase Addendum during the online offer process.
- All properties in the following states are eligible for an incentive:
- AZ, CA, FL, IA, ID, IL, IN, KS, MA, MD, ME, MI, MN, MO, NE, NH, NJ, NM, NV, OH, OR, PR, TN, VA, WA, WI, WV
- Public entities are eligible for the incentive. Auction, pool and investor sales are not eligible.
- Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
- Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.
- Not eligible on tenant occupied properties.
Buyers should consult their lender for guidance.
The incentive will offer qualified buyers up to 3.5 percent of the final sales price to pay closing costs. In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option.
Applying the 3.5% incentive to closing costs may be considered a Seller Contribution and subject to financing caps of Seller Contribution for their selected mortgage product. The negotiated incentive (may be 3.5% or less per lender limits) must be noted in section 38 of the Fannie Mae Purchase Addendum and the amount must be reflected on the HUD-1 at closing.
Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.