Closing cost incentive on Fannie Mae REOs extended to June 30

With unusually cold weather delaying the spring homebuying season, Fannie Mae is extending a 3.5 percent closing cost assistance incentive for newly listed “HomePath” properties in its real estate owned (REO) inventory.

The incentive is available in 27 states for the first 20 days after a property is on the market, during a “FirstLook” period when buyers who intend to be owner-occupants and public agencies get the first shot at Fannie REOs without having to compete with investors.

When the incentive was introduced on Feb. 14, it was good for homes on which offers were submitted by March 31 and closing by May 31. The extension means buyers can qualify if they submit offers by April 30 and close on or before June 30.

One way buyers can use the incentive is to buy down their interest rate by paying points upfront. Source: