What are some alternatives to the Fannie Mae HomePath mortgage?


Quick Answer

Alternatives to the former Fannie Mae HomePath mortgage depend on what kind of loan a consumer needs, but a viable option is an FHA loan, explains Amerifirst Home Mortgage. Some programs and loans help first-time homebuyers or those purchasing a foreclosed home, while others provide financing for home improvements.

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Full Answer

Options for financing a home purchase include mortgages guaranteed by the Federal Housing Administration, loans guaranteed by the United States Department of Agriculture for their Rural Development program, and conventional mortgages, states Amerifirst Home Mortgage. In the first two options, private lenders provide the financing, and the federal government insures the loans, allowing the lenders to approve consumers who might not otherwise qualify for loans. Consumers must meet certain requirements to apply for these mortgages, such as buying a home for the first time or buying the home in certain areas. Should a home buyer prefer a conventional mortgage, some lenders may offer mortgages with the same low down payment requirement as the FHA program.

As of 2015, consumers with a home improvement project may apply for a 203k loan insured by the FHA, according to Amerifirst Home Mortgage. They can also refinance their home to tap into the equity.

Fannie Mae, or the Federal National Mortgage Association, is a government-sponsored enterprise that supplies home loans, says SFGate. The company ended its HomePath mortgage programs in October of 2014.

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