Fannie Mae offering Home Buyer Incentives

mortgageporterraiseFannie Mae is offering first time home buyers up to 3% towards closing cost when they purchase a Fannie Mae HomePath property. On a $300,000 home, 3% would be up to $9,000 towards allowable closing cost!  A Fannie Mae HomePath property is a home that Fannie Mae has foreclosed on and now owns.

In order for the home buyer to be eligible for the Fannie Mae HomePath incentive, they must take Fannie Mae’s online home buyer class, which cost $75. Fannie Mae will reimburse the $75 to the home buyer at closing on a HomePath property. The class must be completed and the home buyer must obtain a certificate from the class prior to making an offer on a Fannie Mae HomePath property. 

The incentive is available for first time home buyers, which is defined as someone who has not owned a home in the last three years, who are going to occupy the home as their primary residence.

Your Real Estate Broker must request the incentive (seller contribution) on the Fannie Mae HomePath website when they submit the online offer and language must also be included in the purchase and sales agreement.

The property must be listed on Fannie Mae’s HomePath website and be eligible for the program.

The home buyer can use any mortgage program (Fannie Mae HomePath is no longer a mortgage program).  The incentive could be combined with the down payment assistance programs, such as Home Advantage – the only catch is that the home buyer will have to take two home buyers classes (a WSHFC approved class and Fannie Mae’s class).

For more information and full terms and conditions to the Fannie Mae HomePath incentive program, click here.

If you are considering buying a Fannie Mae HomePath property or any home located in the state of Washington, I’m happy to help you! Please click here if I can provide you with a mortgage interest rate quote for a home located in Washington state.

Washington State Down Payment Assistance Programs and Grants

2013-03-07_0746Washington State home buyers have several various down payment assistance programs available and they’re not just limited to first time home buyers.  These funds can go towards closing cost and the down payment of primary residence.

Here’s an updated list of what I have available.

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The FHA HAWK Program for Homebuyers

Osprey_muralA few weeks ago, HUD announced a new program created for first time home buyers which rewards them with reduced mortgage insurance premiums after they participate in home buyer education and one-on-one housing counseling. HAWK or Homeowners Armed with Knowledge is a pilot program set be released in two phases on a limited basis.

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First Time Home Buyers Guide Book

Check out the latest edition of Your First Home Mortgage Guide.

Although I wrote this book with first time home buyers in mind, a majority of the content is relevant to all home buyers.

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What is a Mortgage Credit Certificate or MCC?

Mortgage Credit Certificate (or also referred to as MCC) is a federal tax credit available to first time home buyers who meet certain requirements. With the tax credit, eligible home buyers can adjust their their withholding to take advantage of the savings monthly instead of waiting until they file their taxes.  The MCC remains available as long as the borrower owns and occupies the property.

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Freddie Mac Home Possible Mortgage

2013-03-07_0746Freddie Mac’s Home Possible Mortgage is a great mortgage program designed for first time home buyers. What’s so special about this program is that it allows a home buyer to qualify for dramatically reduced mortgage insurance premiums with a minimum down payment.  The down payment may be gifted by a family member. No reserves are required for a single family dwelling.

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Your First Home Mortgage Guide Book

My most recent guide book, Your First Home Mortgage, is filled with information that I hope first time home buyers will find useful. Please feel free to share this book with anyone you know who is considering buying their first home.

You can find a collection of my other guide books and slide shows by visiting the Mortgage Porter library.

Remember, if I can help you with your mortgage needs, including buying or refinancing a home located anywhere in Washington state, I’m happy to help you! Click here for a free rate quote.

PS: If you’re interested in attending one of my home buyer seminars sponsored by the Washington State Housing Finance Commission, click here.

Three different 3 Percent Down Conventional Loan Programs

EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.

UPDATE February 21, 2014: Conventional financing currently has increased the minimum down payment to 5% from 3% unless you are considering the Home Advantage Mortgage Program. Mortgage programs and guidelines change constantly so please check with your local mortgage professional regarding what is currently available for you. 

I’m pricing out a scenario for a first time home buyer who’s looking at buying a home priced at $250,000 and they have roughly 3% set aside for down payment plus closing cost. Since they have excellent credit, they are leaning towards conventional financing instead of FHA, which has much more expensive mortgage insurance (upfront and monthly).

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