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Torres & Co. Lending > First-Time Homebuyer Programs > HomePath

HomePath

HomePath Program

The HomePath Program, offered by Fannie Mae, provides special financing options for homes that Fannie Mae owns due to foreclosure. These properties are listed as HomePath Homes and can present buyers with unique opportunities, often at more affordable prices than traditional homes.

What Is the HomePath Program?

HomePath is a financing program for Fannie Mae-owned foreclosed properties. It allows buyers to purchase eligible homes with a low down payment and flexible mortgage terms. While the HomePath program has changed over the years, many lenders still provide Conventional financing tailored specifically for these properties.

How It Works

  • Property Eligibility: Only available for homes owned by Fannie Mae and listed as HomePath Properties.
  • Down Payment: As little as 3% for first-time buyers when paired with HomeReady.
  • Credit Score Requirement: 620+ (higher scores get better pricing).
  • Mortgage Insurance: Required if less than 20% down, but cancellable once 20% equity is reached.
  • Special Incentives: Periodic promotions may offer closing cost assistance (up to 3%).

Benefits of the HomePath Program

  • Access to homes often priced below market value.
  • Low down payment options for first-time buyers.
  • Some properties qualify for renovation financing to help with repairs or upgrades.
  • PMI can be removed once 20% equity is reached (unlike FHA).
  • Frequent promotional incentives from Fannie Mae, such as assistance with closing costs.

Fun Facts & Insider Details

  • First Look Program: Owner-occupant buyers get priority for the first 20 days a HomePath home is listed, before investors can make offers.
  • HomePath Ready Buyer Program: First-time buyers who complete an online education course may be eligible for up to 3% closing cost assistance.
  • As-Is Sales: HomePath properties are sold as-is, but often priced lower to account for needed repairs.
  • Renovation Options: Some lenders allow pairing HomePath with a renovation loan if the property needs work.

Who Is the Best Candidate for HomePath?

  • First-time buyers seeking affordable homes.
  • Buyers willing to purchase foreclosed or as-is homes.
  • Moderate-income buyers looking to combine with HomeReady for only 3% down.
  • Investors (after the First Look period expires).

FAQs – HomePath Program

  • Available listings can be found on HomePath.com.

  • Yes, but only after the initial First Look period for owner-occupants ends.

  •  No. HomePath is designed for Conventional financing through Fannie Mae.

  • No, repeat buyers can also qualify. However, some benefits (like 3% closing cost assistance) are limited to first-time buyers.

Next Step

Interested in HomePath properties? Let’s check availability in your area and see if you qualify for closing cost incentives.

Apply Now

⚖️ Disclaimer: This guide is for educational purposes only. Loan approval and terms depend on credit, income, assets, property type, and program guidelines.

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