CORRECTION: Timeframe for incentive eligibility has been corrected to reflect that initial offers may be submitted on or after June 14th.

Fannie Mae announced Tuesday that it is beefing up incentives to encourage sales of its HomePath REO properties to owner occupants.

Now through October 31, qualified buyers and selling agents can receive financial incentives on sales of HomePath properties. Selling agents representing an owner occupant buyer will get a $1,200 bonus. At the same time, qualified homebuyers can receive up to 3.5 percent of the final sales price to put toward closing costs.

The incentive must be requested in the initial offer. Eligible offers may be submitted any time after June 14,

2011 but must close by October 31, 2011. Investor sales do not qualify for the incentive.

Fannie Mae says the incentive special is part of the company’s commitment to neighborhood stabilization by putting responsible buyers into homes they will maintain as their primary residence.

“Supporting homeownership and stabilizing neighborhoods are critical to helping the housing market recover,” said Ed Neill, SVP for credit loss management at D.C.-based Fannie Mae.

“Our previous incentives have been effective in securing owner occupants for these properties,” Neill said. “By encouraging homebuyers who will make these properties their long-term home, these expanded incentives will help to stabilize communities.”

HomePath properties offer buyers a wide selection of options, including single-family homes, condominiums, and town houses.

The GSE’s bank-owned properties offered through the HomePath channel may also be eligible for HomePath Mortgage and HomePath Renovation Mortgage financing, with as little as 3 percent down.

Fannie Mae acquired 53,549 single-family REO properties through foreclosure in the first quarter of this year. As of March 31, 2011, the company’s inventory of REO homes stood at 153,224. The GSE’s carrying value for this bank-owned portfolio was $14.1 billion.