Foreclosure in 27519>Question Details

now208, Home Buyer in Cary, NC

I heard there was a program where Fannie and Freddie paid a large percentage of closing costs. Is this still in effect and if so, what is the % paid?

Asked by now208, Cary, NC Mon Jun 18, 2012

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I see you have gotten a lot of answers, a lot is determined by the property you are interested in ie: a short sale or foreclosure as compared to a HUD owned property. I would suggest finding a property you are interested in and letting your Agent and Loan Officer determine the best way to move forward with an offer including CC determined in some instances with the type of property.
Michael
0 votes Thank Flag Link Mon Jun 18, 2012
Now208,

Fannie Mae offers a 3.5% contribution towards closing costs and/or appliances on all of their Homepath properties. To determine if a property qualifies as a Homepath property, go to homepath.com.

You are able to get up to 6% seller paid closing costs in general and a bank's asset manager will contemplate this expense into your offer. On bank owned properties, the asset manager has already reduced the price in anticipation of a quick sale AND has taken into account the repairs which will need to be done.

Foreclosed properties are often distressed and the buyers are often incorrect about the "bargains" that they can get when seeking out foreclosed properties. The most thorough means of determining the true nature of the "bargain" and value of the property, would be to pay for an inspection and receive comprehensive quotes for all of the work that will need to be done on the property THEN add that amount to the purchase price of the home and compare that total to the Realtor's market value of the property itself. Watch and see as the phantom equity disappears. Banks are not stupid and asset managers get paid to move properties, especially ones that are in poor condition. Be careful.
0 votes Thank Flag Link Mon Jun 18, 2012
The maximum is 6% according to the FNMA guidelines and I don't believe there is a specific program per se, but your request to have 6% paid is negotiable. IF you have an offer that "nets" enough for the seller, I'd imagine they'd certainly consider paying it. Definitely a good topic of discussion for you and your Loan Officer first and then your Agent.
0 votes Thank Flag Link Mon Jun 18, 2012
The question I asked is there a program instituted by Fannie and Freddie where they pay a certain amount or percentage of closing costs. I am aware that a buyer can ask the seller to pay for closing costs. This is specific to foreclosures and I asked it in the foreclosure category.
0 votes Thank Flag Link Mon Jun 18, 2012
You can always ask any seller to pay some or all of your closing costs.
0 votes Thank Flag Link Mon Jun 18, 2012
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