Read on to find out more about the retired HomePath program. To find out about HomePath program alternatives, complete this short online questionnaire and an expert will contact you to find the best program for your needs. While HomePath loans did not require PMI, they typically came with higher interest rates. Many HomePath properties are still available at 5% down, although private mortgage insurance (PMI) will be required.However, there is a renovation program available through FHA. HomePath Renovation homes will not pass minimum property requirements. HomePath buyers will now need an appraisal.
In short, buyers of HomePath properties will experience a few changes: When the buyer owns more than 4 financed properties and is buying a 2-4 unit home, the maximum Loan-to-Value is increased to 75%.Maximum seller contributions of 6% of the purchase price when the down payment is less than 10%.The reason? Fannie Mae has decided that its portfolio of foreclosed homes (aka REO properties) is shrinking and special incentives are no longer needed.įor buyers who have a signed purchase contract after October 6, Fannie Mae has loosened guidelines somewhat for its REO properties. Keep in mind that these updates only apply to properties that formerly qualified for the HomePath program: Buyers must have had a completed home purchase contract dated on or before this date to use the HomePath program. Editor’s note: Fannie Mae discontinued the HomePath program on October 6, 2014.