Fannie Mae Pays Closing Costs on Their REO Properties

Fannie Mae makes their move

The lending industry has had a historic year so far as the landscape changes, the government changes policies and recovery continues to seem far away. This month, FHA raised mortgage insurance premiums as their coffers get empty and Representative Barney Frank calls for Fannie Mae and Freddie Mac to be abolished. Historic times, indeed.

Each segment of the housing market, especially the lending sector is modifying policy and procedure and even offering incentives to keep the buyer pool interested. Today, Fannie Mae announced a new incentive through their HomePath.com REO site.

The incentive offered:

According to Fannie Mae, the discount can be used for closing cost assistance or the buyer’s choice of appliances. The offer applies to any owner-occupant who closes on a property listed on HomePath.com before May 1, 2010.

“Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,” said Terry Edwards, EVP of Fannie’s credit portfolio management.