Fannie Mae Helps Minnesota Home Buyers With Closing Costs

Home Destination forwards news of Fannie Mae on new assistance for Minneapolis real estate sellers. We help you get started by using our Mortgage Worksheet.




Fannie Mae extends an REO Incentive To Buy Minnesota HomePath foreclosed properties: Limited time only: Fannie Mae to help cover mortgage closing costs: Assistance goes to HomePath properties in 27 states Fannie Mae Helps Minnesota Home Buyers With Closing Costs


February 14, 2016

If you were considering buying a Twin Cities home and thought reduced rates were in the past, you have another opportunity. Fannie Mae is offering more incentive to owner occupants, that is non-investor purchasers of new homes, by helping to cover home closing costs.


First-time Homebuyer Get Help With Closing Costs From Fannie Mae


This "act quick" offer is only available to FirstLook homes, and only for a short period of time. Right on the top of the home page of HomePath, buyers are urged to "Act Now"! HomePath s Fannie Mae's incentive program where homebuyers get a break form investor competition to buy homes more easily. This news comes on top of unexpected lower rates. Minnesota home buyers who calculate what the drop in borrowing costs means, add to that help Fannie Mae's help with closing cost, and it may add up agreeably to help buyers purchase a house sooner than they had planned. "People are getting a second chance, and that is bound to give a boost to the housing market,” said Sam Khater, deputy chief economist at CoreLogic Inc. "It’s not a game changer unless the emerging markets situation worsens and rates get even cheaper."


Fannie Mae's HomePath and FirstLook Program


The home can be purchased via Fannie Mae's HomePath website which features foreclosed homes from the portfolio of the government-sponsored enterprise. Fannie Mae recently announced the extension of the FirstLook period from fifteen days to twenty days.


More Minnesota Families Can Become Homeowners


“This incentive will provide more opportunities for families to find a property to call home,” said Jay Ryan, Vice President of REO Sales. “Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery.”


Minnesota is one of 27 states that gain this helping hand from Fannie Mae. Buyers will find amongst the HomePath offerings single-family homes, condominiums, and town houses to choose from. To be eligible the following applies:


1) Homebuyers need must submit offers by March 31, 2014, and close on the home before June.

2) The incentive means that qualified buyers may receive up to 3.5% of the final sales price to pay closing costs.

3) The home must be in Minnesota and in an active FirstLook Period

4) Offer is only for owner occupied homes; buying a home for rental income does not qualify.


Investors Responded Differently Than Economist Predicted - Which Helps Home Buyers


The Federal Reserve December announcement that it would begin tapering purchases of mortgage-backed securities, was no surprise. Subsequently, major housing forecasters echoed a concern that many had that rates would jump in Quarter 1 of 2014. However, economists were amiss in guessing that investors would respond to the Federal retreat by moving money our of emerging markets into U.S. Treasuries, creating a downward turn on home-loan rates.

Fannie Mae, Freddie Mac, the Mortgage Bankers Association and the National Association of Retailers all voiced expectation that mortgage rates would increase by 0.3 percentage points or more, beginning in January. Rarely do we see such a shocker as yields on 10-year treasuries shrank as investors drove up bond prices. And now to sweeten the process of buying a Minnesota foreclosed home, buyers have this unexpected help from Fannie Mae with closing costs.

"The drop in the last month proved forecasters wrong. I was surprised by what happened in the bond market," said Douglas Duncan, chief economist of Fannie Mae in Washington. "Everyone was surprised. It was completely unexpected that mortgage rates would fall after the Fed began tapering."



Here is the full list of 27 states where buyers are offered Fannie's closing cost incentive:


Arizona

Maryland

New Mexico

California

Massachusetts

Ohio

Florida

Michigan

Oregon

Idaho

Minnesota

Puerto Rico

Illinois

Missouri

Tennessee

Indiana

Nebraska

Virginia

Iowa

Nevada

Washington

Kansas

New Hampshire

West Virginia

Maine

New Jersey

Wisconsin


Don't Delay - Federal Reserve Plans to Carry Forward With Moves That Will Likely Increase Rates


Buyers have good reason to take Duncan seriously. As well, the short window to utilize Fannie's closing cost incentive echoes the "Act Now" message. The Federal Reserve's January 29th press release reinforced that it "will take a balanced approach consistent with its longer-run goals".

More affordable borrowing costs may make the difference for some Twin Cities home buyers. Others may find that Fannie Mae's offer to help with closing costs on a metro HomePath dwelling is just enough to tip them into making a home purchase this spring. The cost benefits may help a number of buyers absorb the increase in home prices that pushed financing of a home into the future. Buyers can revisit the timing of their purchase and may well determine it possible to move ahead now given these breaks. Buyers are permitted to use the closing cost savings to buy down their interest rate through upfront points, saving even more in the long haul. Read more about getting help with your home closing costs.


"In many cases, buyers could use these savings to buy down their interest rate through upfront points, resulting in additional savings over time. Buyers can work with the lender of their choice to determine if this is an option."


Home Destination is dedicated to helping you find your best opportunity to buy the Twin Cities home you can comfortably afford and enjoy living in as long as you choose to. You probably have some questions. I invite you to call me at 612-396-7832; we can connect and look at real estate listings that are appealing to you. Let me know a time that is convenient for you to cover your options.



Jenna Thuening, a home prices and market review Twin Cities residential Realtor can help you consider the new Fannie Mae offer to help with home closing costs.


11200 W. 78th St
Eden Prairie MN 55334
Phone: 612-396-7832
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If I'm out in the field, you may quickly reach me by email: jenna@homedestination.com and note how I can help you, or leave a message on my voicemail and I will return your call as quickly as possible.