HomePath® Mortgage Loans
Updated January 2017
Fannie Mae has a mortgage program called the Fannie Mae HomePath® financing program that is targeted toward people who are interested in buying a home that is currently owned by Fannie Mae.
The program ended its run in October 2014, but in its place are flexibilities available on HomePath® properties:
- The lender, seller, or others party to the sale are allowed to contribute up to 6% of the purchase price.
- Borrowers with 5 to 10 financed properties are permitted to have a maximum LTV, CLTV, HCLTV ratios of 75% for two to four unit investment properties.
- Mortgages with imposed resale restrictions may be eligible for a standard Fannie Mae mortgage.
These flexibilities are applicable to mortgage loans delivered on or after 1 July 2014.
In 2015, Fannie Mae launched its HomePath® Ready Buyer™ which offers closing cost assistance to first-time homebuyers contingent on their completing an online education course.
Fannie Mae’s HomePath® Ready Buyer™ Program
Under this program, first-time homebuyers to receive up to 3% in closing cost assistance towards the purchase of a HomePath® home if they complete an online education course.
This online homeownership course is offered by Framework® and costs $75, which is reimbursable by Fannie Mae upon closing of the loan.
To qualify for the closing cost assistance and course reimbursement, you must meet these guidelines:
- You must complete the online training course and receive a Certificate of Completion.
- You must be a first-time homebuyer and plan to occupy the property as your primary residence.
- Your request for a closing cost assistance must be made during the initial offer, and submitted on or after 14 April 2015.
The following describes the HomePath® regular and HomePath® Renovation loans, as archived.
HomePath® Properties Mortgage Financing: Popular Everywhere
The HomePath® loan has several advantages over other forms of financing (FHA, VA, etc.) and if you are buying a home that is currently owned by Fannie Mae, chances are that it is your best option when it comes to getting a mortgage.
There are two kinds of HomePath® loans – the “regular” HomePath® loan and the HomePath® Renovation loan. The regular HomePath® mortgage is designed for people who are planning on making the property they are buying from Fannie Mae their full-time, primary residence. If a home is eligible for the regular HomePath® loan, chances are that the real estate agent will have put the logo somewhere on the sales sheets and/or talked about how the home you are looking at is eligible for “special” financing. Your Realtor may also have seen the logo on the MLS and may be able to give you at least some information about it.
HomePath® mortgage financing benefits include:
The Fannie Mae HomePath® mortgage program has several benefits that make it a good deal when compared to other mortgage loan programs. Just a few of these benefits include:
- Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
- Qualify with less than perfect credit
- HomePath® and HomePath® Renovation loans are available to both owners and investors
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
- No mortgage insurance
- No appraisal fees
- No declining markets policy
- No more than 10 financed properties
- No prepayment penalties
HomePath® Renovation Mortgage
In the event that you are an investor or someone who is just interested in buying a home that is in need of repairs and it is currently owned by Fannie Mae, the HomePath® Renovation mortgage maybe be your best option for financing. Homes that are in need of repairs often will have the HomePath® Renovation loan logo on the sales sheets and the MLS indicating that it is available for HomePath® Renovation loan financing.
HomePath® Renovation Highlights and Benefits
Just a few of the highlights of the HomePath® Renovation highlights include:
- Financing to fund both your purchase and light renovation
- Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
- Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
- No mortgage insurance
HomePath® Financing in 2017
The HomePath® and HomePath® Renovation loan programs may be gone but foreclosed properties owned by Fannie Mae can be financed through:
- HomeReady™ mortgage with down payments as low as 3%
- Financing assistance programs offered by local and state housing authorities
Get started today by getting a free HomeReady™ mortgage quote today!