Freddie Mac SmartBuy, Closing Cost Assistance Program Expires This Month
October 7, 2009 by Danilo Bogdanovic
Filed under Buyer Resources
Since July, Freddie Mac has been offering to pay home buyers up to 3.5 percent for closing cost assistance and a 2 year home warranty through their HomeSteps SmartBuy program. This is a huge incentive that has come in handy for those with not a lot of cash lying around and/or wanting to use the money in other ways. But the program is soon coming to an end.
Freddie Mac’s HomeSteps SmartBuy program will expire October 30, 2009. In order to qualify, home buyers must make an initial offer on a HomeSteps home by October 30, 2009 with closing completed by December 31, 2009. It applies only to houses purchased as a primary residence.
If you submit an offer on a HomeSteps home after October 30, any closing cost assistance from Freddie Mac will have to be negotiated.
If you’re interested in purchasing a Freddie Mac HomeSteps home or have any questions about the SmartBuy program, click here to contact me.
Click here to search for available Freddie Mac HomeSteps SmartBuy homes in the area.
HUD Approves First Time Homebuyers, Lenders Using Tax Credit as Down Payment
May 30, 2009 by Danilo Bogdanovic
Filed under Buyer Resources, Mortgage/Lending
Looks like I spoke too soon… HUD has approved first time home buyers and lenders (mortgagees) using the up-to-$8000 first time home buyer tax credit as a down payment, to pay closing costs and/or buy down the interest rate. The official HUD letter with guidelines was released yesterday. Here it is (if you can’t see the document, click here)…
HUD Letter to Mortgagees: Instructions on how to use First Time Home Buyer Tax Credit –
The next step is for banks/lenders to come up with a system internally that will allow them to offer this to borrowers. This could take a few days to a several weeks. Check with your lender to see if/when they have a system in place for you to take advantage of this program.
P.S. This “use your tax credit as a down payment” program is set to expire this November. The up-to-$8000 first time home buyer tax credit as a whole is set to expire December 1, 2009.
Hat tip to Dulles Association of Realtors (DAAR) for breaking the story.
