What is the Difference Between Fannie Mae Homepath and Freddie Mac Homesteps?

Editor’s Note: Both the Fannie Mae HomePath mortgage and the Freddie Mac HomeSteps mortgage programs have been discontinued. However, HomePath and HomeSteps properties are still available for purchase using standard mortgage financing. This post has been updated to reflect the current state of both programs.

Fannie Mae and Freddie Mac both sell foreclosed homes they have acquired — and both offer programs designed to make those properties more attractive to buyers. While the names sound similar, HomePath and HomeSteps are quite different in how they work.

Here’s what you need to know about each program today.

Fannie Mae HomePath

HomePath properties are homes owned by Fannie Mae, listed for sale at homepath.com. They are available to owner-occupants, second home buyers, and investors.

Fannie Mae periodically offers special incentives for owner-occupant buyers — particularly first-time homebuyers — including closing cost assistance and priority purchase periods. These promotions change, so it’s worth checking the HomePath website directly for current offers.

The HomePath Mortgage: Discontinued in 2014

From approximately 2009 through October 2014, Fannie Mae offered a specialized HomePath Mortgage for purchasing these properties. It included notable benefits such as no appraisal requirement, no private mortgage insurance, and flexible down payment options.

That mortgage program no longer exists. HomePath properties today are financed using standard mortgage programs — conventional, FHA, VA, or USDA — depending on the buyer’s situation and the property type.

Freddie Mac HomeSteps

HomeSteps properties are homes owned by Freddie Mac, listed for sale at homesteps.com. Like HomePath, these properties are generally in better condition than many other distressed or foreclosed homes.

HomeSteps has never offered a specialized mortgage program — it has always functioned as a seller incentive program. Current features typically include:

• First Look Initiative — owner-occupant buyers get priority access to purchase a HomeSteps property before investors can submit offers
• Occasional closing cost credits or other seller incentives (conditions apply — check homesteps.com for current offers)
• Compatible with any standard financing — conventional, FHA, VA, or USDA

How to Finance a HomePath or HomeSteps Property Today

Since neither program offers a specialized mortgage, buyers use standard loan programs to purchase these properties. Common options include:

• Conventional loans — as little as 3%–5% down for owner-occupants
• FHA loans — flexible credit and down payment guidelines
• VA loans — no down payment required for eligible veterans and service members
• Investment property financing — for non-owner-occupied purchases

The right loan depends on your goals, the property type, and your financial profile. I’m happy to help you think through the options.

Interested in Buying a HomePath or HomeSteps Property in Washington State?

If you’re considering purchasing a Fannie Mae or Freddie Mac foreclosure property in Washington state, I can help you find the right financing and structure your offer competitively.

Get a rate quote or reach out directly — there’s no cost or obligation to get started.