Fannie Mae has expanded incentives offered through its HomePath program to encourage sales of real estate owned properties.
The government-sponsored enterprise said Tuesday that it will once again pay qualified borrowers up to 3.5% of the final sales price toward closing costs. The offer is available only to buyers who intend to live in the home and sales must close by Oct. 31.
The incentive was already offered once this year, and twice last year, as Fannie tries to manage a rising inventory of REO properties.
Additionally, selling agents representing the buyer can now receive a $1,200 bonus, Fannie said.
The HomePath program enables borrowers to buy certain Fannie Mae-owned properties with a low down payment and no mortgage insurance.
