Can I use the HomePath incentive currently being offered for the Renovation Mortgage?  Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through October 31, 2011.   You can use the incentive on the Renovation Mortgage as long as you are purchasing a HomePath property to use as your primary residence(second homes and investment properties are are not eligible for the incentive).  Moreover, the following guidelines apply:

1.     Incentive must be requested upon submission of initial offer.

2.     Sale must close on or before October 31, 2011.

3.     Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.

4.     Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.

5.     Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible.

Additionally, to use the Renovation Mortgage the property must need only minimal to moderate renovations (up to 35% of the as completed value with the maximum not to exceed $35,000).  The one loan includes both funds for purchase and renovations.