Key Takeaways
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The Fannie Mae HomePath® program helps buyers access affordable homes at below-market prices.
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It’s ideal for first-time homebuyers, especially those seeking foreclosed homes with low down payment options.
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Buyers can benefit from closing cost assistance, flexible loan options, and early access before investors.
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Homes are sold “as-is,” so it’s important to budget for repairs or use a renovation loan.
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You must live in the property as your primary residence and qualify financially to participate.
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If you’re searching for a budget-friendly housing option, the Fannie Mae HomePath® program could be your gateway to affordable homes in 2025. Designed to support first-time homebuyers, this unique initiative gives you early access to foreclosed homes—often listed below market value. With low down payment mortgage options, closing cost assistance, and the ability to use renovation loans, this program provides a practical path to homeownership without stretching your budget.
What Is the Fannie Mae HomePath® Program?
The Fannie Mae HomePath® program allows buyers to purchase homes Fannie Mae acquired through foreclosure or deed-in-lieu. These properties are sold as-is, often at competitive prices, and are primarily available to owner-occupants before investors. This approach helps stabilize neighborhoods while offering buyers a chance to find real value.
Financing Options for Fannie Mae HomePath® Properties
Fannie Mae supports several mortgage options that make it easier to finance a HomePath property. Here’s how each option works:
| Loan Type | Features |
| HomeReady® Mortgage | Minimum 620 credit score, As low as 3% down payment, Income up to 80% of AMI |
| HomeStyle® Renovation Loan | Combines purchase and renovation in one loan, Renovation ≤75% of future home value |
| HFA Preferred™ Loan | Available through state housing finance agencies, Requirements vary by state |
These loans give qualified buyers more flexibility, especially if the home needs updates or improvements.
What Is the HomePath Ready Buyer™ Program?
The HomePath Ready Buyer™ Program helps first-time homebuyers save even more. Eligible buyers who complete a required homebuyer education course can receive up to 3% in closing cost assistance. If your income is at or below 100% of your area’s median income, you may qualify for additional savings. This program can dramatically reduce your upfront costs.
How to Buy a Fannie Mae HomePath® Property
Ready to begin your home search? Follow these steps:
- Get Preapproved
Secure mortgage preapproval or provide proof of funds if you’re paying cash. - Search Listings
Visit HomePath.com to find available properties. Listings are updated frequently, and many offer early buyer exclusivity. - Make an Offer
Work with a licensed real estate agent to submit your offer directly through the HomePath platform. - Finalize the Purchase
After your offer is accepted, lock in your financing and complete closing. You may use your own title provider or Fannie Mae’s recommended services for potential discounts.
Pros and Cons of Fannie Mae HomePath® Homes
Here’s a breakdown of the main advantages and potential drawbacks of buying a HomePath property:
| Pros | Cons |
| Lower purchase price than market value | Sold “as-is,” which may require costly repairs |
| Priority access for owner-occupants before investors | Limited inventory depending on location |
| Up to 3% in closing cost assistance for eligible first-time buyers | Offers cannot be contingent on selling your current home |
| Renovation loan options allow customization | Fewer listing details available compared to traditional home listings |
Is a Fannie Mae HomePath® Home Right for You?
If you’re a first-time homebuyer or a buyer looking for affordable homes with renovation potential, the Fannie Mae HomePath® program could be the right fit. You’ll need to act fast, as properties often attract multiple offers. However, the savings—especially when combined with low down payment loans and closing cost assistance—can be substantial.
FAQs: Fannie Mae HomePath® Program
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