Fannie & Freddie Offer Buyer Incentives

Borrowers from Fannie Mae and Freddie Mac that purchase foreclosed homes owned by these two lenders will soon receive special incentives on the part of these companies that will help homebuyers to cover closing costs. These two companies, both of which buy mortgages in bulk from lenders, will offer these incentives at a time when many potential homebuyers are struggling.

Freddie Mac’s SmartBuy program began and July and gives homebuyers until October 30 to apply to take advantage of the offer, which allows the buyer to use up to 3.5 percent of the home’s sale price to cover closing costs. To qualify, the home must be the homebuyer’s principal residence and must be chosen from the company’s HomeSteps site.

Fannie Mae’s incentives for homebuyers involve mortgages offerred to buyers that make a down payment of three percent. Buyers do not have to secure private mortgage insurance, as they would to do business with almost any other lender. Fannie Mae says that it already owns the risk on the property, allowing to give homebuyers the opportunity to save extra money on their mortgages.

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