Earlier this month, Fannie Mae retired the Fannie Mae HomePath Mortgage program which was available exclusively to homes owned by Fannie Mae as a result of foreclosure. This popular program offered mortgages with no private mortgage insurance and no appraisal was required. Investors were able to buy HomePath properties with reduced down payments.
In lieu of the HomePath Mortgage, Fannie Mae is offering “financing flexibilities” for Fannie Mae owned properties (aka HomePath properties).
- Interested parties contributions (typically sellers) can contribute up to 6% towards allowable closing cost (rather than the standard 3% on higher loan to values).
- Borrowers owning 5-10 financed properties are allowed a maximum loan to value of 75% for 2-4 unit investment properties (rather than the standard 70%) on fixed rate mortgages only.
- In the event the HomePath property is subject to any resale restriction imposed by Fannie Mae, the mortgage is eligible for a new Fannie Mae conforming mortgage.
I’m sorry to see the HomePath mortgage program no longer available. However, with all of down payment assistance programs available, many of my clients would opt not to use the HomePath Mortgage. This will be more of a sting to those wanting to buy investment property less than the standard down payment.
If I can help you with your home purchase or refinance for property (including HomePath homes) located anywhere in Washington state, please contact me!