What’s the difference between Fannie Mae Homepath and Freddie Mac Homesteps?

EDITORS NOTE: Fannie Mae is no longer offering the FannieMae HomePath mortgage program. If you are considering buying a Fannie Mae HomePath property (foreclosure that is owned by Fannie Mae) in Washington state, I’m happy to help you.

EDITORS NOTE: Mortgage programs and guidelines often change… you can find an updated version of this post here.

Fannie Mae and Freddie Mac both offer special incentives to entice buyers to properties they have foreclosed on. Fannie Mae’s program is called Homepath and Freddie Mac’s is Homesteps. Although the names some similar, their incentives are VERY different.

Fannie Mae’s Homepath program is only available for homes identified on their website www.homepath.com.  As of the publishing of the post, the Fannie’s Homepath site reports their are 175 homes listed in the greater Seattle area alone. The Homepath program is actually a conventional Fannie Mae program that offers special guidelines, including:

• expanded loan to values: as low as 3% down payment for owner occupied and 10% down for investment property.
• no appraisal required.
• no private mortgage insurance with credit scores of 660 or higher.
• condos are easier to finance than typical conventional (less requirements).
• competitive rates
• conventional Fannie Mae financing. NOTE: you can do other types of financing with a Homepath property, however you will not receive the above listed benefits.

Click here for a rate quote for a Fannie Mae Homepath mortgage on homes located anywhere in Washington.

Freddie Mac’s Homesteps offering is not a special mortgage program. It’s essentially a seller concession on homes owned by Freddie Mac. Homesteps properties are located at www.homesteps.com. Currently*  there are about 48 homes in Seattle that qualify for Freddie Mac’s Homesteps.  Incentives include:

• program works with any type of financing, including FHA, conventional, VA and USDA.
• 3% contribution towards actual buyers closing cost.
• 2 year home warranty
• discount on appliances available with the Smart Buy Program
• owner occupied only

Click here for a rate quote for programs that work with Freddie Mac Homesteps (FHA, conventional, VA and USDA) on homes in Washington.If you’re considering buying a home located any where in Washington, where I’m licensed to originate mortgages, I am happy to help you!

*NOTE: incentives offered on this post were as of February 11, 2012 and have changed.