Home Path

Home Path

The Fannie Mae HomePath® program is a fixed-rate, fully amortizing loan program that provides the financing for properties that are owned by Fannie Mae as a result of foreclosure or other similar action such as a deed-in-lieu.          

• Low down payment minimum of 3% down payment is required which can be funded by the borrower’s own savings, a gift, a grant or a secured loan from a nonprofit organization, state or local government or employer
  
• No appraisal required
  
• No mortgage insurance required
• Expanded seller contributions for closing costs allowed 
  

Home Path Minimum Credit Score

Primary Residence Purchase

• 1 Unit 97% LTV with 660 minimum credit score and 80% with 620 minimum credit score
• 2 Units 85% 660 with  minimum credit score and 80% with 620 minimum credit score
• 3-4 Units 75% LTV with 620 minimum credit score

Second Home Purchase

• 1 Unit 90% LTV with 700 minimum credit score 80% LTV with 620 minimum credit score

Investment Property Purchase

• 1 Unit 85% LTV with 700 minimum credit score 
• 80% LTV with 620 minimum credit score
• 2-4 Units 75% LTV 620 minimum credit score

PROGRAM GUIDELINES 

Foreclosure

Foreclosures in the last 7 years are not eligible.

Bankruptcy

Bankruptcy in the last 4 years is not allowed. Multiple bankruptcies in the last 7 years are not acceptable.

Short Sale/Short Payoff

A short sale or short payoff related to a delinquent mortgage obligation is not allowed within the last 7 years.

Disputed accounts

In order for the loan to be eligible, disputed account(s) must be removed from credit and re-run through DU to obtain Approve/Eligible results. 

Collections and Charge-offs

In certain cases, collection and charge-off accounts will be reflected in amounts that have no material effect on the priority of the lien; therefore, collection or charge-off accounts do not have to be paid off at or before closing.  

Qualifying Ratios

The standard debt-to-income ratio is 45%. The maximum debt-to-income end ratio is 50%.  

SELLER CONTRIBUTIONS

Interested party contributions, as a percentage of the sales price or appraised value, whichever is less, are limited to the following values.

Occupancy LTV/CLTV Maximum Seller Contributions

• Primary Residence up to 97% maximum 6% contribution
  
• Less than 75% LTV maximum 9% contribution
• Second Homes 75.0 up to 97% maximum 6% contribution
• Less than 75% LTV maximum 9% contribution
• Investment Properties All LTVs 2%

Mortgage Insurance

Mortgage Insurance is not required on the Fannie Mae HomePath®.

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