The Quicken Loans Conventional Product Manager Justin Herring said this new program is a real win for first-time home buyers.
“While Fannie Mae hasn’t announced an end date for this program, I would encourage clients to take advantage of this great offer now,” Herring said. “Rates are near historic lows.”
Sounds good right? We think so, too. There are a couple of things you need to know so you can qualify.
The assistance Fannie Mae provides can go toward closing costs, points, prepayment of expenses and reimbursement of your buyer education course fee. There are a few eligibility requirements:
- You must be a first-time home buyer.
- The home must be your primary residence within 60 days of closing.
- Tenants in tenant-occupied properties are eligible to buy homes through the program.
- The home must be a Fannie Mae-owned HomePath property.
In order to qualify for this deal, the property must be owned by Fannie Mae. Luckily, you can find listings for these properties on the HomePath site. You can input the location you’re looking for, and your desired number of bedrooms and bathrooms. You’re also able to specify a minimum and maximum price.
Prior to making your initial offer, you have to complete a buyer education course designed to prepare you to get your mortgage loan. The nine-module course covers topics like these:
- Avoiding common problems
- Determining how much you can afford
- How to decide which home is right for you
The cost of the course is $75. If you do end up purchasing a HomePath home, this fee is reimbursed when the loan is closed. Fannie Mae says most people complete the course in 4 – 6 hours. If you have a co-borrower, only one of you must complete the course.
The Offer Process
After you complete the course, you’re ready to make an initial offer. There are a few differences between making an offer on a HomePath home and a regular offer.
You cannot purchase a HomePath property without going through a real estate agent. If you don’t have an agent already, Fannie Mae provides contact info for agents on the property page, or you could check out In-House Realty to find one in your area.
In order to be eligible for the program, your agent should also request closing cost assistance from Fannie Mae at the time the initial offer is made. Your agent will make the offer online and attach your HomePath Ready Buyer course completion certificate.
Are you interested in buying a home through this new program? If you have any questions, let us know in the comments!
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