There are many homes lost to foreclosure since the mortgage and real estate crisis in 2008. Many of these foreclosed homes or mortgages were bought by Fannie Mae. As a result, there are a lot of Fannie Mae foreclosed homes that are up for sale creating really great home buying opportunities for those who are qualified. To help sell the foreclosed homes, Fannie Mae has set up a special mortgage financing program called HomePath Financing by Fannie Mae. This program is designed for borrowers who are looking to buy a home to live in or to purchase as an investment property.
Home Path Mortgage is a special home buying option available through Fannie Mae. Multiple incentives are available to entice buyers to purchase Fannie Mae properties including reduced down payment requirements and closing costs, flexible mortgage terms and elimination of mortgage insurance and home appraisal fees.
In order to qualify for the lowest down payment requirement, which is 3 percent down, using HomePath financing all applicants must have a minimum 660 credit score. Borrowers with a credit score between 620 and 659 will require a 20% down payment. Applicants with a credit score of 619 and less will not quality for a HomePath Loan. In addition the borrower must receive a "DU - Approve Eligible" from Fannie Mae's automated underwriting engine.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to increase the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders.