Fannie Mae announces 3% closing cost aid program

WASHINGTON – April 15, 2015 – Fannie Mae announced yesterday the rollout of its HomePath Ready Buyer program for qualified first-time homebuyers, defined for the program as someone who hasn't owned property in the past three years.

Under the program, buyers can receive up to three percent of a home's purchase price in closing cost assistance when they buy a home through Fannie Mae's HomePath program, providing they also complete a homebuyer education course.

On a $150,000 home, Fannie Mae says the program could save buyers up to $4,500. In addition, Fannie Mae will reimburse buyers for the $75 cost of the education course at closing.

"We developed the HomePath Ready Buyer program to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process," says Jay Ryan, vice president of REO sales with Fannie Mae. "Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership."

For the buyer education course, Fannie Mae partnered with Framework, a nonprofit created by the Housing Partnership Network and the Minnesota Homeownership Center. The course covers the complexities of home buying and responsibilities of owning a home. The course contains nine 30-minute sessions and is entirely online.

To be eligible for the program:

• Buyers must complete the full online HomePath Ready Buyer training course on https://www.homepath.com and receive the Certificate of Completion.
• An applicant must be a first-time homebuyer with plans to make the home their primary residence. Auction, pool and investor sales aren't eligible.
• The request for closing cost assistance must be made at the initial offer, and submitted on or after April 14, 2015.
• Buyers interested in becoming a homeowner are encouraged to take the course as soon as possible. The course must be completed before submitting an offer to qualify.