The Federal National Mortgage Association, commonly known as Fannie Mae was established in 1938 by the US Congress as a Government Sponsored Enterprise or GSE. It is responsible for maintaining a secondary market in home mortgages. By ensuring that mortgages meeting specific criteria can be readily traded among lending institutions and investment bank. It also increases the ability of lenders to provide long term mortgages. Fannie Mae has plenty of programs available for those who wish to have their own home. One of them is called the Fannie Mae's Home Path program. This program is available to purchase qualified foreclosed homes (owned by Fannie Mae) with expanded conventional guidelines, competitive mortgage rates and often times, with special incentives.
The highlights of the HomePath Program are:
1. For Owner Occupants the down payment requirement is still only 3%.
2. Second Home buyers are getting in with putting down only 10%
3. Investors also can use the HomePath Program to buy investment properties with 10% down
5. NO appraisals – since Fannie Mae is selling the property there is no appraisal required
6. Seller concessions are allowed up to 6% for primary residences, 6% for 2nd homes and 2% for investors.
7. Conforming Loan Limits apply
8. Many condo projects requirements, are waived.