The purpose of the now defunct HomePath mortgage programs was to assist foreclosed property purchasers in obtaining favorable mortgages and funds to remodel and repair houses in Fannie Mae's inventory, states Quicken Loans. Owner-residents obtained HomePath mortgages with a 5 percent down payment and no appraisal or mortgage insurance. Under the HomePath Renovation Mortgage program, purchasers could borrow up to 35 percent of a foreclosed property's purchase price, capped at $35,000, for improvements. The programs ended on Oct. 6, 2014.
The HomePath mortgage program offered 10 percent down payment plans for purchasers of second homes and 15 percent down payments for investors. Purchasers typically needed a credit score of about 660 and a loan amount of $50,000 or more, according to The Spokesman-Review. Down payment sources included gifts, savings, grants and loans from state or local governments or nonprofit organizations. The closing time was about two weeks.
Fannie Mae terminated its HomePath purchase and renovation mortgage programs because the real estate market was improving and the foreclosed home inventory was shrinking, explains Quicken Loans.
Washington state home purchasers who bought Fannie Mae foreclosures as their primary residences under the FirstLook program previously received closing cost assistance for up to 3.5 percent of the final sales price, but Fannie Mae terminated that temporary benefit when it ended the HomePath mortgage programs, notes The Spokesman-Review.