Other unique traits of the Home Path program include : There is no PMI ever on a Fannie Mae HomePath loan. These downpayment requirements are in–line with Fannie Mae’s other, non–HomePath loan programs but with one major exception – via HomePath, private mortgage insurance (PMI) is not required. For investors, the minimum downpayment is just 10 percent. Īs one example, via HomePath, lenders require just 5% down on a purchase for buyers who are purchasing a home to use as a primary residence. The benefits of a HomePath mortgageįor buyers of foreclosed homes, the Fannie Mae HomePath loan boasts several distinct advantages over other financing types such as the and. The purchase and renovation loans close simultaneously, which reduces borrower closing costs. Via HomePath Renovation, a foreclosure buyer can purchase a home and simultaneously borrow the lesser of either 35% of the home’s value–after–repairs, or $35,000. The is aimed at buyers buying a home in need of heavier work or repair and, real estate investors doing fix–and–flip, for example.

The second HomePath program is called the HomePath Renovation Mortgage. The standard HomePath mortgage is meant for buyers who are purchasing the foreclosed property to be their primary residence and for homes which are generally move–in ready. The Home Path Mortgage resembles a traditional home loan you might find from a bank. The first program is called the HomePath Mortgage. There are two distinct programs available via HomePath. The HomePath program lets buyers buy Fannie Mae–owned homes with simpler mortgage requirements than with a traditional loan, at. The agency is not designed to “manage properties” so the HomePath program was created to unload the thousands of homes which Fannie Mae had repossessed. The Fannie Mae HomePath program first launched in early–2009 as a way to help Fannie Mae sell homes it had reclaimed via foreclosure. What is the Fannie Mae HomePath mortgage? HomePath is a brand name and refers to foreclosed homes sold by Fannie Mae directly.įannie Mae HomePath is available in all 50 states.

To help match foreclosed homes with buyers who want them, then, Fannie Mae offers a special program called HomePath. Since 2006, home buyers have flocked to foreclosed homes as an inexpensive way to purchase property.Įven today, foreclosures remain popular among all buyer types including first–time home buyers, move–up buyers, and real estate investors, as well.

For other low-downpayment mortgage programs, see our post Buy A Home With A Low Downpayment Or No Downpayment At All. This post will not be deleted for archival purposes. Today, Fannie Mae still operates a Homepath website, on which it lists foreclosed properties for sale.Įditor's Note: The HomePath program was discontinued in October 2014. Homepath loans required no private mortgage insurance (PMI). The Fannie Mae Homepath loan is a defunct mortgage program which reduced the cost of purchasing a foreclosed property for either personal use, or to “flip” for profit.

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