Does the Homepath incentive offered until December 31, 2010, apply to second homes? The Homepath incentive offered until December 31, 2010, applies only to primary residence.  Buyers can receive up to 3.5% in closing cost assistance bonus on HomePath® properties. To be eligible for this incentive:

• Initial offers must be accepted on or after September 23, 2010;
• Property sales must close on or before December 31, 2010, and close within 60 days of offer acceptance;
• Buyers must be owner-occupants and confirm that the property will be used as their primary residence by completing a certification form.  Second homes and investors are excluded.

Fannie Mae created the "First Look" program to make sure that owner occupant, primary users get the first chance to purchase HomePath properties.  The Certificate used by Fannie Mae requires that buyers and their agents attest that the buyers actually intend to occupy the home as their primary residence.  Furthermore, it states that they will face a $5000 penalty and additional costs including loss of earnest money if they falsify this information.    Those criteria along with this incentive reinforces Fannie Mae's commitment to stabilizing communities and providing extra benefits to buyers who are purchasing homes as primary residence.