Fannie Mae's HomePath program
WASHINGTON, DC (January, 2010) Fannie Mae (FNMA) announced the HomePath program -- an initiative intended to facilitate the sale of some of its foreclosure properties. For very specific properties, the program allows home buyers to use a down payment as low as 3% (that's $4,500 on a purchase of a home priced at $150,000) and pay no appraisal fee.
Fannie Mae was created as a privately owned company with a mission of providing affordable mortgage financing to home buyers by securitizing pools of mortgage loans and selling them on Wall Street. However, during the credit crisis FNMA required so much financial assistance from the US government that the company is now effectively controlled by the government.
The HomePath program will certainly help FNMA sell some of its foreclosure properties; the terms of the program, however, are still harder on home buyers than HUD's $100 down payment purchase incentive.
Consider this comparison between the two programs for a home priced at $180,000:
| HomePath | HUD $100 down | |
| Down payment | $5,400 | $100 |
| Paid closing costs expiration date | May 1, 2010 | (no expiration date) |
| Appraisal fee | none | none |
| Less than perfect credit OK | yes | yes |
| Must get financing from select lenders | yes | yes |
For many home buyers today, the biggest obstacle to home ownership is the large down payment required. Although the HomePath program will help FNMA sell some of its foreclosure properties, its relatively high down payment requirement will still put it out of reach for many buyers.
To get started on the path to buying a home with the lowest down payment possible, click here to get pre-qualified for HUD's $100 down payment program.