If closing costs and the price of household appliances have been holding you back from making an REO purchase, then Fannie Mae is going to give you a little more time – and a gentle nudge – in the buying direction. On Tuesday, April 27, Fannie Mae announced that it will extend its seller assistance incentive, HomePath, through June 30, 2010. The program was originally set to expire on May 1, 2010. Even better, more buyers and sellers will now qualify for the program.

HomePath is an “REO disposition operation” designed to help stabilize neighborhoods by putting qualified homeowners in houses. Qualified buyers receive 3.5 percent of the final sales price to be used on closing costs or a selection of Fannie Mae-approved appliances. Furthermore, HomePath approved properties can be matched with these homeowners, who can then buy with as little as 3 percent down in some cases.

Starting this Tuesday, the incentive offer is available to any owner-occupant who closes on the purchase of a HomePath-listed property by June 30, 2010. While this may not necessarily be a great incentive for real estate investors personally, it could be a great way to target some good properties that come with a built-in sales pitch and some extra incentive for qualified buyers to move fast.

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