Friday, March 21, 2014

Home Path Buyers Incentive

Home Path Last Call

Time is running out fast to take advantage of the HomePath Closing Cost Incentive.  Up to 3.5% (of purchase price) in closing cost incentive is available but you must act fast.  Buyers must make their initial offer on a HomePath property by March 31, 2014 and close by May 31, 2014 to qualify.  This additional spiff is only good for owner occupied buyers who request the incentive in their initial offer during the First Look period.  Oregon is one of the eligible states for this offer.  Make sure to put the request for the incentive in line 38 of your addendum in your on line offer.    Last Call!!

By now most people are familiar w/the HomePath program.  Certain homes owned by Fannie Mae are available to qualify for the program and its perks… including this added bonus.  A list of qualifying homes available in your area is available at the official site.  3.5% towards closing costs is no chump change.  Buy a $250,000 house and that adds up to $8750 towards your closing costs.  Be aware that not all loan programs allow seller contributions that high.  Typically, on a conventional loan with 5% down payment the max seller contribution is only 3%.  Still it’s worth asking for it.  

But what if you your closing costs aren’t that high?  On smaller loan amounts this typically isn’t an issue but it can be for larger loans, say those over $200,000.  That’s because some of the closing costs are fixed and don’t rise as the loan amount does. The result is that larger loans have closing costs that are smaller in terms of their percent of price.  You can still capture all this added HomePath incentive (or any seller incentive) by buying down the rate.  Commonly called “points” these additional closing costs can soak up any additional seller paid cost to get a lower rate for the buyer.  But don't wait...

Click Here to visit the HomePath site for additional details on the program and available homes.  If you are a borrower make sure you are working w/a real estate agent that has experience w/this unique program.  And by all means if you are on the fence about buying a home save yourself some green and buy while the cash incentive remains.

Eric Lundberg - NMLS #261588
President, Chinook Mortgage Ltd - NMLS #261588

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