Fannie Mae HomePath Mortgage: What It Was and What Replaced It

Fannie Mae’s HomePath Mortgage was one of the most popular low-down-payment programs of its era. From its launch through October 2014, it offered buyers a way to purchase Fannie Mae-owned foreclosures with reduced down payments, no appraisal requirement, and no private mortgage insurance — a genuinely attractive combination that many Washington State buyers took advantage of.

When the program ended, I had helped many homebuyers use HomePath successfully. The good news is that the programs that replaced it are in many ways better and more broadly available — you no longer need to limit your home search to Fannie Mae-owned foreclosures to get similar benefits.

What Replaced HomePath? Today’s Best Alternatives

If you’re a Washington State homebuyer looking for low down payment options, here are the programs I recommend exploring today:

How HomePath Compared to Today’s Programs

For historical context, here’s how the old HomePath program stacked up against what’s available now:

• Down payment: HomePath required 3–5% for owner-occupied (10% for investment). HomeReady and Home Possible both offer 3% for owner-occupied — same or better.
• No appraisal: HomePath didn’t require an appraisal. Today’s conventional programs do require appraisals, but appraisal waivers are increasingly common through automated underwriting.
• No PMI: HomePath had no PMI requirement. Today’s 3% down programs do include PMI, but HomeReady and Home Possible offer reduced rates. PMI can also be cancelled once you reach 20% equity.
• Property restrictions: HomePath only worked on designated Fannie Mae foreclosures. Today’s replacement programs work on any eligible property — a significant improvement for buyers.
• Income limits: HomePath had no income limits. HomeReady and Home Possible do have income limits in most areas; HomeOne does not.

Buying a Home in Washington State? Let’s Talk.

Whether you’re a first-time buyer, move-up buyer, or looking at a Fannie Mae foreclosure specifically, I can walk you through all the options available and help you find the best fit for your situation. I’ve been helping Washington State homebuyers navigate programs like these since 2000. Programs change — the guidance doesn’t.

• Get a free mortgage rate quote
• Get preapproved to buy a home in Washington State
• Contact Rhonda with questions

Historical Reference: The Original HomePath Program (2009–2014)

The information below is preserved for historical reference. These guidelines no longer apply — the HomePath Mortgage program ended in October 2014. For current programs, see the options above.

Fannie Mae’s HomePath program was created to help sell homes that Fannie Mae acquired through foreclosure. It offered special financing exclusively on properties listed on homepath.com, with these guidelines at the time of the program’s end:

• Available for owner-occupied, second homes, and investment properties
• Available for single family dwellings, PUDs, and condos
• No appraisal required — property value was determined by the contract price
• No private mortgage insurance
• As little as 3% down for owner-occupied (raised to 5% in late 2013)
• 10% down for investment properties with no PMI and no appraisal
• Non-occupant co-borrowers allowed with 5% down or more
• Seller contributions allowed up to 6% for LTVs over 75% (owner-occupied/second homes) and up to 2% for investment properties
• Gift funds allowed for down payment on LTVs above 95%
• Eligible HomePath condos had reduced project eligibility requirements compared to standard condos

Fannie Mae officially retired the HomePath Mortgage program on October 6, 2014. The HomePath property website (homepath.com) still operates as a search tool for Fannie Mae-owned properties, but the special financing guidelines above are no longer available.