Special offer

The FANNIE MAE Home Path Program

By
Real Estate Agent with RE/MAX Preferred SL# 3221750

The FANNIE MAE Home Path Program

I am surprised how so few people know about this program. The FANNIE MAE Home Path Program is the least expensive mortgage program for Ft Lauderdale first time homebuyers that is available, and since FANNIE MAE owns the home they do not require an appraisal!


This program was designed to help stabilize communities impacted by recent foreclosures by creating another option for homebuyers to achieve homeownership. The FANNIE MAE Home Path Program is now available to agents and buyers, and can provide up to 97% financing for qualified borrowers wanting to purchase an eligible Fannie Mae-owned property. Even investors and multiple home owners can use this program (investors only need to put down 10%, instead of 20%, plus there is no PMI...)!

In Summary, The FANNIE MAE Home Path Program:


- Low 3% down- up to 97% financing for primary residence and up to 90% for investment property
- No MI required; however specific MI adjusters apply
- Fixed rates, ARMs and Interest-Only payment feature available
- May be available to buyers with less-than-perfect credit
- Eligibility for high balance conventional loans
- Eligible properties include primary residences, second homes and investment properties
- Minimum credit score requirements are as follows:

- 660 required for Loan To Value > 80% (down payment less than 20%)

- 620 required for LTV <= 80% (down payment more than 20%)
-Down payment can be funded by a borrower’s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer (very similar to FHA guidelines, but without the additional FHA MI costs...).

You can go to http://www.homepath.com to search for directly for eligible Fannie Mae properties.

Joseph Schutz
EXIT Ryan Scott Realty

Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Guess I always assumed that the Homepath program was only available on Fannie Mae foreclosures. Thanks for the info.

Oct 10, 2013 12:47 AM
Joseph Schutz
RE/MAX Preferred - Wilton Manors, FL
A Realtor with Experience You Can Trust!

It must be a Fannie Mae owned property.  That is true.

Oct 10, 2013 12:50 AM
Michael Gellert
Jupiter, FL
Keller Williams Realty Direct 954-534-0730

It is a great program and I tell my buyers to look at these properties because of the value to them, great post

Oct 10, 2013 02:31 AM
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

I have used this program and sometimes with success. It is still a government program with a lot of red tape and incompetence that only a government can give you. It is a good program that is run sometimes very poorly.

Oct 10, 2013 06:50 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Joseph, this is such a clear explanation of this program.  Clear is good!

Oct 10, 2013 11:47 AM
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

Excellent summary. Thanks!

Oct 13, 2013 01:29 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Hi, Joseph. 

I included this post in today's Last Week's Favorites.  Enjoy  the rest of your weekend! 
Oct 13, 2013 08:32 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

It is a good program but it WILL have it's problems in the future I'm sure.  No MI is risky considering what we've just gone thru in the marketplace plus this is a foreclosure after all.  House is a victim already! 

I just personally think that with no appraisal that FNMA can start charging whatever they want vs. what the market will accept.  Why else do the no appraisal feature? 

Oct 13, 2013 10:36 AM
Joseph Schutz
RE/MAX Preferred - Wilton Manors, FL
A Realtor with Experience You Can Trust!

Hi everyone and thank you for all of the comments. 

Thanks Michael and Brad!

Jimmy, Yes, this is a government program, but that's not necessarily a bad thing, and if it helps a 1st time homeowner be able to enter the world of homeownership, then it's definately a good thing.  Is it perfect?  Of course not, but it does offer benefits an FHA loan does not.

Lyn, The reason no appraisal is required is because Fannie Mae already OWNS the property.  They know it's value.  An appraisal would be redundant.

Patricia, my 1st featured Blog article! Thank you so much!  I'm honored! 

Thanks again for all of your feedback and I'm glad I was able to provide some value to this great Active Rain Community.

 

Oct 13, 2013 10:38 PM
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate
It is a great program and we've sold a number of HomePath properties.
Oct 14, 2013 12:27 AM