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Editor’s note: Fannie Mae discontinued the HomePath program on October 6, 2014. Buyers must have had a completed home purchase contract dated on or before this date to use the HomePath program.
The reason? Fannie Mae has decided that its portfolio of foreclosed homes (aka REO properties) is shrinking and special incentives are no longer needed.
Fannie Mae still sells its foreclosed homes (REO properties) through HomePath.com. Its Selling Guide gives buyers of these “HomePath properties” a limited exception to its standard rules. The exception applies only to homes that Fannie Mae owned and sold:
- Seller contributions toward closing costs can be as high as 6% of the price on a principal residence when the loan-to-value ratio is above 90%. The standard limit at that ratio is 3%.
In short, buyers of HomePath properties should know:
- HomePath buyers need an appraisal. On a principal-residence purchase approved in Desktop Underwriter, Fannie Mae gives the lender a $500 credit that the lender must pass to the borrower to cover the appraisal. If the home needs repairs, a renovation loan such as the FHA 203(k) may help. See our FHA 203k page.
- You finance a HomePath property with a standard loan. A first-time buyer can put as little as 3% down on a one-unit home with a standard Fannie Mae loan, and HomeReady also allows 3% down (income limits apply). Mortgage insurance is required with less than 20% down. The old HomePath loan had no mortgage insurance, but it typically came with a higher interest rate.
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.
The rest of this page describes the HomePath loan as it worked before October 2014. Those terms no longer apply.
Fannie Mae HomePath
In recent years, buying foreclosures has been an increasingly popular home buying choice. In the past, real estate investors purchased foreclosed homes on the cheap to build their portfolios.
Now, foreclosed homes are also a great idea for buyers looking to buy their first home or an additional home. Fannie Mae has a special program designed to promote and sell its inventory of foreclosed homes to the general public and they list those homes for sale on its website.
Check your home buying options. Start here (Oct 25th, 2026)
What is a HomePath loan?
HomePath is the name given to Fannie Mae’s program to sell real estate it owns. These homes have been foreclosed on, and now ownership has gone back to Fannie Mae, the owner of the loan. Like any mortgage holder, Fannie Mae does not wish to hold real estate but offload it to a buyer as quickly as possible. Until 2014, that meant special financing options for the buyer through the HomePath® program. Until October 2014, the HomePath mortgage let borrowers buy a Fannie Mae-owned home with easier requirements than a traditional loan. The main benefits were:
- You could buy a home with a 5% down payment (before November 16, 2013, only 3% was required).
- No appraisal was required
- No private mortgage insurance was required
- The loan was available for second homes and investment properties
Prospective buyers can visit the HomePath website, enter in any city or zip code where they’re interested in buying, and a list of available properties will appear. The property’s complete description, address and photos are listed along with important details about the property including the real estate broker listing the property.
For homes that qualify for HomePath® financing, the HomePath Mortgage logo appears with the listing. Keep in mind that many, but not all properties on the HomePath website are eligible for HomePath financing. In addition, there was a HomePath sub-program called HomePath Renovation, with which a buyer could buy the home and finance repairs with one loan. It ended with the HomePath mortgage. See our HomePath Renovation page.
In the Map Search option, you can narrow results by state and county, and narrow your results even more by bedroom and bathroom count, square footage, and price. You can even save your filters for future searches. Upon finding a home, you can apply with any lender that sells loans to Fannie Mae. The loan application process will be similar to that of other loan products.
Check your home buying options. Start here (Oct 25th, 2026)
What income do I need to qualify for HomePath?
Standard debt-to-income ratios apply to all HomePath loans and income must be documented with paycheck stubs, W2s, and filed income tax returns. These programs are considered “fully documented” loans, meaning all income and asset information will be verified.
The HomePath loan suggested a maximum debt ratio of 45, meaning no more than 45 percent of a borrower’s gross monthly income went to credit obligations. That means if your monthly income was $5,000, your monthly principal, interest, property tax, homeowner’s insurance, as well as all other monthly debt payments should not have exceeded $2,250. Today, Fannie Mae allows a debt-to-income ratio of up to 50% on loans approved in Desktop Underwriter.
$500 minimum investment
The HomePath loan required a minimum down payment of 5 percent for a buyer purchasing a home they intended to live in. Borrowers are also eligible to receive down payment assistance from approved public agencies or other eligible gift sources.
Gift funds can be used for the down payment as well as closing costs. When using down payment assistance, the borrower was required to have at least $500 of their own money invested into the transaction. For buyers purchasing a second home or investment property, the down payment requirement was 10% of the purchase price.
Appraisal & credit
The old HomePath loan did not require an appraisal. Buyers now need one. Homes listed for sale on the HomePath site are sold “as is” and a property inspection is recommended. However, the homes are considered “ready for sale” and some have had improvements made to them after the foreclosure. Homes that have had improvements made have a logo next to their listing indicating additional work has been done.
Keep in mind that some work may have to be done on many HomePath properties. Fannie Mae realizes that these properties would be hard to finance with typical FHA, VA, or conventional financing due to their condition. But if you want a great deal and want to put some sweat equity into the property, HomePath might be for you. Of course, some of the properties may already be in good condition.
Additional HomePath requirements
Occupancy. You can purchase a HomePath property as a primary residence (meaning you intend to live in it), a second home, or an investment (rental) property.
Credit. HomePath properties are now financed with standard Fannie Mae loans, so standard credit rules apply. Fannie Mae no longer sets a minimum credit score for loans approved in its automated underwriting system, Desktop Underwriter, but lenders can set their own minimums. A manually underwritten loan needs at least a 620 score for a fixed-rate loan or 640 for an adjustable-rate loan. After a foreclosure, the usual waiting period is seven years, or three years with documented extenuating circumstances.
Loan Amount. Maximum loan amounts for HomePath properties follow Fannie Mae’s conforming loan limits, which are higher in counties deemed “high cost” areas. FHFA sets the limits each year.
Eligibility. Check for the HomePath logo when viewing a property on the website. The logo indicates that the property is eligible for HomePath financing.
First Look Program. Buyers who intend to occupy the HomePath home as a primary residence are eligible to view and purchase a property before real estate investors are allowed. This exclusive option period lasts for the first 30 days a home is listed for sale on HomePath. The listing shows when the First Look period ends.
Check your home buying options. Start here (Oct 25th, 2026)
HomePath FAQ
Where do I find a HomePath lender? The HomePath loan ended in 2014, so there is no special HomePath lender. Any lender that sells loans to Fannie Mae can finance a HomePath property. Ask your lender whether the 6% seller-concession exception applies to your purchase.
Can I get an adjustable rate using a HomePath loan? HomePath financing offered both fixed-rate and adjustable-rate loans before it ended in 2014. Today, ask your lender about the loan types it offers.
How do I know if the property is in good shape? The homes listed for sale have all been prepared for sale and some have had improvements made. Homes that have had work performed on them will be identified with a logo next to the listing. However, all properties should be inspected by a professional home inspector prior to purchase.
How do I make an offer on a HomePath home? Your offer is submitted to the listing agent responsible for marketing and selling the Fannie Mae-owned home to the public. You should also use the services of a buyer’s agent to help walk you through the process. As with any purchase, get pre-approved for a mortgage, and go from there.
Do I have to use a HomePath mortgage when buying a HomePath property? HomePath financing no longer exists, so you will use a standard loan, such as a conventional, FHA, VA or USDA loan, and the lender will require an appraisal. If you have further questions about HomePath, you can complete our no-obligation form and a loan professional will be in touch.
