Just days after advising buyers to get better engaged with the homebuying process and to shop around for the best mortgage deal, Fannie Mae is launching an educational program for first-time buyers and offering a discount on closing costs.
Earlier this week, Fannie Mae said a review of its National Housing Survey data showed that obtaining and comparing multiple mortgage quotes and being better informed about the homebuying process may help borrowers get the right mortgage and financial terms.
Now, the government-sponsored enterprise’s HomePath Ready Buyer program will offer qualified first-time buyers up to 3 percent in closing cost assistance upon completion of an online education course.
The closing cost assistance only applies to HomePath properties, which are Fannie Mae-owned properties, not all home purchases.
“Purchasing your first home can be an overwhelming process,” said Jay Ryan, Fannie Mae’s vice president of REO sales. “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 homebuying process.”
According to Fannie Mae, on a $150,000 purchase, a buyer could save up to $4,500.
“Closing cost assistance provides a cushion many first-time buyers need to more confidently face the financial responsibilities of homeownership,” Ryan said.
The required online course, a joint offering by Fannie Mae and Framework, a nonprofit organization created by the Housing Partnership Network and the Minnesota Homeownership Center, comprises nine 30-minute sessions and costs $75. Fannie Mae will reimburse that fee at the time of closing.
To qualify for the program, buyers must not have owned a property in the past three years and plan to reside in the property as their primary residence. The request for closing cost assistance must be made at the initial offer.
For more information on the course and to sign up, buyers can visit https://www.homepath.com/ready_buyer.html.
This story has been updated.