In the past year, there has been a significant decline in the amount of foreclosure properties available in the Phoenix area. However, they still exist and for those interested, Fannie Mae is now offering a new incentive to help with closing costs. This is a great program but not one that will be around for a long time. Additionally, not all states qualify for this program; however, Arizona is one of the states that does.

Until the end of March 2014, homebuyers in Arizona who place an offer on a Fannie Mae HomePath property can qualify for up to 3.5 percent of the purchase price for help on closing costs. This program is available only to assist buyers looking to purchase a home for their personal use, but not for those seeking to purchase investment properties. "This incentive will provide more opportunities for families to find a property to call home," said Jay Ryan, Vice President of REO Sales. "Our goal is to sell as many HomePath properties as possible to owner-occupants who will stabilize neighborhoods and help the housing recovery."

Those who want to take advantage of this program must first make an offer on any property in the First Look period. This is a time frame for buyers to look at potential properties without any type of competition from investors. The length of time, previously 15 days, has now been extended to 20 days.  Potential buyers in Arizona must make an offer on available properties through HomePath by March 31, 2014 and the property must close by May 31,2014. Buyers are able to use the amount from incentive for closing costs but also may use it to decrease the amount of their mortgage rate by using it towards discount points.

Potential homebuyers in Arizona are some of the select few who are able to qualify for this program. This program is a fantastic way to help those looking to purchase a home and will also help to reduce the amount of foreclosures on the market.