Fannie Mae Home Path Loans

The HomePath Mortgage product allows a borrower to purchase a FannieMae-owned property with much more flexible terms and guidelines than a tradition conventional mortgage purchase. The HomePath lending has expanded in recent years to help deal with the wave of foreclosed properties. The aim is to help borrowers close on these properties quickly and easily.

HomePath Facts:

  • No appraisal necessary
  • Down payment of 3% for owner occupied properties
  • Down payment can be from borrower’s own savings; a gift; a grant; or it can be a loan from a nonprofit organization, state or local government or employer
  • No mortgage insurance
  • Fannie Mae will contribute to closing costs if asked in offer
  • Primary, second homes, and investment properties allowed
  • More flexible lending on condominium complexes
  • Renovation mortgages are available on some Fannie Mae properties which will provide money for rehab

To qualify for Fannie HomePath mortgage financing the property must be an approved HomePath home. Make sure to ask your MA real estate agent about HomePath properties in your area.
Your link to MA HomePath properties

Tips & Traps

  • Check to see if the property is HomePath Elligible Properties
  • Once the offer is verbally accepted by Fannie Mae the 10 day inspection period begins to run
  • Fannie Mae properties are generally sold on an “as is” basis. The inspection you conduct is to educate yourself about the property, not to get together a list of repairs for Fannie Mae
  • A home buyer can submit their offer with any licensed Massachusetts realtor. It is advisable to use a realtor who has experience with purchasing a Fannie Mae property.
  • Be through and accurate at the beginning of your application phase
  • Inform your lender of any changes to your credit including credit inquiries or new accounts
  • Always provide full bank or retirement statements that include your name/address/institution/full account#/all pages. If it says page 1 of 5, all 5 pages will be required.
  • Provide documentation after an approval is issued as quickly as possible


  • New Massachusetts case law has caused many foreclosures conducted by Fannie Mae to be deemed improper. If considering buying a HomePath property, consult a seasoned real estate attorney prior to putting in an offer
  • Do not deposit any money into your bank account until first talking with your lender
  • Do not open up any new lines of credit or pull your credit until you have closed on your loan
  • Do not change your financial picture during the transaction – job change, payment history, etc.
  • Work with your lender. Sometimes it may seem like the lender is asking for too much paperwork, or irrelevant paperwork. The lender is just following strict mortgage guidelines. They are not picking on you. Try to be thorough, organized and review all of your documentation before sending it over to make sure it is complete.

Remember: Your lender is your best friend during this process. Be patient and work them. The road to homeownership requires team work between you, lender, attorney & agent.