We first reported in December 2014 that first-time homebuyer closing cost assistance was on the horizon, and on April 14, 2015, Fannie Mae announced the HomePath Ready Buyer program. Qualifying first-time homebuyers can receive up to three percent of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course. On a $150,000 home, this could result in up to $4,500 in savings for the buyer. In addition, Fannie Mae will reimburse the $75 cost of the homebuyer education course at the time of closing. The program is designed to provide first-time homebuyers with the knowledge to make informed decisions as they navigate the complexities of the home buying process. Fannie Mae has partnered with Framework, a nonprofit, to offer a homeownership education course that covers both the complexities of home buying and the responsibilities of owning a home. The course contains nine, thirty-minute sessions and is entirely online.
To be eligible for the closing cost assistance and the reimbursement of the training cost:
- Buyers must complete the full online HomePath Ready Buyer training course on www.homepath.com and receive the Certificate of Completion.
- The buyer must be a first-time homebuyer (did not own a property in the past three years) with plans to reside in the property as their primary residence. Auction, pool and investor sales are not eligible.
- The request for closing cost assistance must be made at the initial offer, submitted on or after April 14, 2015.
Those 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. For more information on the course and to sign up, visit https://www.homepath.com/ready_buyer.html.
The other program available is from Freddie Mac: Home Possible Advantage is a conventional mortgage with a 3 percent down-payment requirement geared to low- and moderate-income borrowers. It’s a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent. To qualify, first-time home buyers are required to participate in a borrower education program.
If you want to know more about these programs, contact a local mortgage professional for a information. I’m sure they would love to sit down and explain the options!