Some foreclosure buyers could get closing cost assistance

Potential homebuyers looking to purchase Houston foreclosures may be able to get some help paying for their closing costs under a revamped program from Fannie Mae.

The firm announced this week that it would give up to 3.5 percent in closing cost assistance to people who purchase one of its HomePath foreclosure properties.

Homebuyers must purchase the home as their primary residence in order to be eligible, and make an offer on a property after April 11. In addition, the deal must close before June 30.

"Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance," said Terry Edwards, executive vice president of credit portfolio management for the mortgage giant.

According to Freddie Mac, mortgage rates have continued to steadily increase in recent days. Despite the third consecutive jump in its weekly rate survey, it said the average interest rate for a 30-year fixed rate mortgage was still just 4.87 percent.

Courtesy of 2M Realty News