Investors Dream Loan - Fannie Mae HomePath

Mortgage and Lending with Tropical State Mortgage (

Excellent Program. Well written article. We have the ability to offer HomePath financing.

Original content by Joshua Lerette NMLS#237468

With the number of REO properties increasing, Fannie Mae has decided to follow Freddie Mac in offering the HomePath Mortgage. HomePath financing is available for Fannie Mae REO’s with the HomePath logo found on  There are approximately 200 homes available in the Pinellas County Region today that are eligible for this financing.  I’ve personally noticed a significant increase in questions about this financing so I thought I would cover the basics. 

Here is a quick synopsis of the HomePath Mortgage:

  • Minimum 5% down for primary residence, 10% down investment property 
  • Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
  • High balance (jumbo) and interest only products available
  • Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
  • This loan does price with a higher rate than your average 30 year fixed conforming loan.  If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points.  Keep in mind, much of this can be covered by the seller and there is no mortgage insurance.  Of course one can just opt for the higher rate in lieu of the discount points.
  • Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing - no problem)

This program is especially perfect for seasoned investors or even first time investors. For anyone who has been in investing knows that guidelines for investment properties tightened greatly over the past few years. Now, you have the opportunity to buy very reasonably priced homes with as little as 10% down with fantastic interest rates and NO MI. I personally think this is a fantastic program that will help you take advantage of a wonderful market to buy your first home or buy your next home! Take advantage of a down economy and invest in your future.

Joshua A. Lerette - Home Loan Specialist
Innovative Mortgage Solutions, Inc.


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