In an effort to jump-start buying among those who have never owned homes before, Fannie Mae this week offered to pay up to 3% of closing costs for purchasers of bank-owned properties.
That would save a buyer $4,500 on a $150,000 home and would equal the program’s required 3% down payment. To qualify, purchasers must complete a first-time homebuyer education course.
The incentive is part of Fannie Mae’s HomePath program, designed to liquidate thousands of foreclosed properties.
Would-be first-time homebuyers often blame their delayed entry into the housing market on high rents and student debt, which prevent them from saving for down payments.
“Purchasing your first home can be an overwhelming process,” Fannie Mae Vice President of REO Sales Jay Ryan said in a press release. “Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership.”