Freddie Mac has joined Fannie Mae in offering limited time and location inducements to move sales on its owned real estate (REO). The company today rolled out sets of incentives for listing and selling real estate agents and for homebuyers. Fannie Mae announced its incentive program last week.
(Read More: Fannie Offers REO Incentives to Owner Occupants)
Freddie Mac will pay a $1,000 bonus to selling agents and a separate $500 incentive to listing agents who sell a home through the company's HomeSteps program. For homeowners there will be $500 that can be used to pay condominium fees, flood insurance premiums or to purchase a home warranty.
To be eligible for either agent or homebuyer incentives, the home must be located in one of 23 target states and offers must be received between February 18 and April 15. The transaction must close by May 31, 2014. Only owner occupied first or second residences are eligible and the promotion does not apply to investor purchases, auction, sealed-bid sales, or bulk sales.
Chris Bowden, Senior Vice President, HomeSteps said, "HomeSteps' 2014 winter sales promotion is focused on firing up sales in 'cold weather' states and condominium deals everywhere. With mortgage rates still low and home inventories tightening, the 2014 HomeSteps Winter Sales Promotion is a great opportunity for families ready to buy and real estate agents ready to sell."
States where the 2014 HomeSteps Winter Sales Promotion is now active include Alabama, Connecticut, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Wisconsin.
Fannie Mae's program is more directly targeted to homebuyers who can receive up to 3.5 percent of the loan amount toward closing costs if they buy a home through its HomePath program. Fannie Mae is offering the program for offers received before March 31 and is targeting 27 states, 12 of which are also eligible for the Freddie Mac promotion.