Fannie Mae is currently offering some great bargains for people interested in buying a foreclosed home.  The phrase “Fannie Mae” is a nickname for the Federal National Mortgage Association (FNMA).  It is a company created by the United States Congress.  Fannie Mae works with banks, and other lenders, to make sure that they have the funds they are about to lend out to the people they give loans to, and also to help make those loans affordable for people.

Many of the homes currently owned by Fannie Mae are homes that have been through foreclosure.  They have a lot of them right now.  In order to encourage buyers, there have been some changes made that will benefit the buyers of these foreclosed homes.  Full details can be found here: http://www.fanniemae.com/homepath/incentive/index.jhtml.

It’s possible to get back up to 3.5% of the closing cost of a foreclosed home that you bought from Fannie Mae.  This can be used towards closing costs, the cost of a new appliance, or a mix of the two.  You must buy the home from Homepath.com, which is Fannie Mae’s website.  Investors are not eligible for this offer.  It is only for people who are buying a home that they intend to live in, not to “flip”.  You offer must be accepted between now, and May 1, 2010, when the sale must close.

You’ve never owned a home before?  There is something new called the “First Time Homebuyer Tax Credit” which offers up to $8,000 as a tax credit when you buy your first home. Buyers of foreclosed homes can take advantage of this offer. Do you already own a home, but are now interested in relocating to a foreclosed home?  If you have been in your current home for five years or more, you can get a $6,500 tax credit when you buy a foreclosed home from Fannie Mae.  These offers will end on April 30, 2010.

Another bargain for buyers of foreclosed homes can be found on Fannie Mae’s website.  Look for the logo that says “Homepath Mortgage Renovation Mortgage”.  For complete details, go here: http://www.fanniemae.com/homepath/financing/index.jhtml. In short, this offer could start you with a low down payment and some flexibility in the type of mortgage offered.  You might not have to pay for mortgage insurance, and there are no appraisal fees.  This is offered to both “owner occupiers” and investors.  Take advantage of these bargains!