Review of the Fannie Mae HomePath Financing Program

Posted on February 10th, 2011 by Stacey Sprain
Stacey Sprain
About The Author
Stacey Sprain - As an NAMP® staff writer, Ms. Stacey Sprain is currently a NAMP® member in good standing, and is a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. If you would like to become a volunteer writer for us, please email us at:

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Review of the Fannie Mae HomePath Financing Program

I’ve seen a lot of press and advertising on the latest Fannie Mae home loan program so, I thought I would do some research to see what I could learn about the program. What I found very odd was that I was able to find very little product information on the HomePath program even with a major effort digging to find information. Because I was confused by this, I called Fannie Mae directly to ask a few questions and good thing I did.

What I found out is that the program is actually a negotiated product between Fannie Mae and only a select number of seller/servicers. This is why very few lenders are offering this type of financing. You will need to check with your lending partners to see if indeed they are or are not offering HomePath financing and will need to pay close attention to the specific details of each lender’s guidelines and requirements as they will differ between lenders.

The HomePath program appears to have been created in order for Fannie Mae to move out a portion of their portfolio of foreclosure properties. The homes that are eligible for HomePath financing appear to be offered at well-below assessed value pricing. Program benefits include the following:

• Minimum of 3% downpayment required in qualifying cases
• Fico score requirements as low as 580 in qualifying cases
• Downpayment can come from gifted or grant monies; secondary financing eligible in some cases
• No mortgage insurance is required
• No appraisal is required
• Eligible buyers include owner occupants purchasing principal residences and investors purchasing investment/rental property
• Availability of HomePath Protection which is a home warranty program for homebuyers

Determining HomePath Eligibility

HomePath eligible homes can be found using the search engine at where the search can be limited to specific state, county and property criteria. Potential homebuyers interested in placing offers must be pre-qualified for purchase and cannot have a need to sell an existing home in order to qualify for the potential HomePath property purchase. HomePath contracts cannot be written with home sale contingencies. The homebuyer will need to contact the agent reflected as the listing agent for the HomePath eligible property for interest in writing an offer. That agent will also be able to answer questions the homebuyer may have regarding the process.

The homes that are listed as HomePath-eligible are being sold by Fannie Mae in “as is” condition and are being sold at far below the assessed value so homebuyers are essentially walking away from closing with immediate equity for the future. However, it is always best that the borrowers still elect to have a property inspection done by a professional inspector to be assured that major mechanicals are in working order and that suggested repairs are only minor in nature.

You’ll find additional information on the HomePath program at where tabs are available with information pertaining to real estate professionals, HomePath Financing and on Fannie Mae foreclosure homes.

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SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (


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