HomePath Loans

HomePath Loans

The HomePath program is unique, offering several benefits to home buyers. The HomePath home loan program requires a minimum down payment as low as 5% with no mortgage insurance, no matter how small your down payment. You can buy a move-in ready home as a primary home or an investment property under the program with no appraisal necessary and seller contributions towards closing costs.

The HomePath program was created by Fannie Mae to clear a large inventory of foreclosure properties and it can be an excellent way to buy a home that is ready to move in with no repairs required.

HomePath Loans

HomePath Foreclosures

Many home buyers complain that it is difficult to buy a foreclosure because their lender will not allow the sale, most often because the house cannot pass inspection and requires important repairs. The HomePath program solves this problem.

Fannie Mae does not lend the money for you to buy a home. Instead, it creates guidelines that lenders must follow to have their loans purchased. Under the HomePath loan program, lenders finance homes that are owned by Fannie Mae through foreclosure with as little as a 5% down payment.

An added benefit with the program is it offers renovation loans if you choose to buy a property that needs work, allowing you to finance up to 97% of the property's post-repair value.

HomePath Mortgage Loans

Why Get a HomePath Loan?

If you find a foreclosed home you like that is owned by Fannie Mae, there are many advantages to getting a loan through the HomePath program.


  • You do not need to get a home inspection.
  • A home appraisal is not required unless you want funds for renovating the property.
  • Minimum down payment of just 5% can be gifted or paid by an employer.
  • If you are buying the property for your primary home, you will not compete with investors for the first 20 days that the property is on the market, and agents are barred from accepting investor offers during this initial time period.
  • You do not need mortgage insurance even if you put the minimum down.
  • You can qualify for a loan with an average credit score.
  • There are many loan options available, including ARMs and fixed-rate mortgages.
  • Many properties have repairs done prior to listing. This work may have been done by a Fannie Mae-approved contractor or the Home Depot, in which case it has a one-year limited warranty.

While there are many advantages to the HomePath program, it is not for everyone. Interest rates through the program tend to be higher than comparable conventional mortgages, although it may be worth it as these loans do not need mortgage insurance, which can cost up to $150 a month otherwise.

Mortgage Loans

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