Freddie Shares Closing Costs on Agency-Owned Homes
Freddie Mac (FRE) offers comprehensive two-year home warranties for buyers of single-family homes as a primary residence through HomeSteps, and will temporarily pay up to 3.5% of the sales price in buyers' closing costs. HomeSteps, which markets Freddie Mac-owned homes, began its SmartBuy offer on July 17 in an effort to promote purchases through the program and will expire its offer on Oct. 30, 2009. The closing cost promotion could save qualified buyers thousands of dollars in transaction costs, according to a corporate release. "This unprecedented offer will enable HomeSteps buyers to protect against unexpected repair costs which could interfere with their ability to meet their mortgage obligation," said Chris Bowden, vice president of HomeSteps. Cross Country Home Services provides Home Protect, the two-year warranty, which will cover electrical, plumbing, air conditioning and heating systems. Ductwork and major appliances such as water heaters, stoves, washer and dryers, dishwashers and refrigerators all fall under the warranty plan as well, according to the release. Buyers will have an option to extend it beyond its expiration date. The warranty is applicable if the home sells as a primary residence for a minimum $25,000. Homes in Alaska and Hawaii are not eligible. The closing cost offer is applicable on initial purchases made by Oct. 31, 2009, with deals closed by Dec. 31, 2009. Write to Jon Prior.