How do I qualify for a HomePath loan?

Asked by: Jarrod Mitchell  |  Last update: February 9, 2022
Score: 4.7/5 (28 votes)

How do you qualify for a Fannie Mae HomePath loan?
  1. Low-income borrower.
  2. First-time buyer or repeat buyer who hasn't owned a home in the past three years.
  3. Limited cash for a down payment.
  4. A credit score of at least 620 (with the best pricing for credit scores above 680)
  5. A maximum debt-to-income ratio (DTI) of 36%

What credit score do you need for Fannie Mae HomePath?

Fannie Mae offers financing for HomePath properties through its network of approved mortgage lenders. In general, Fannie Mae requires a minimum FICO credit score of 620 to qualify for its mortgage loans, but the qualifying requirements may vary according to down payment amount and individual home buyer circumstances.

Who qualifies for Fannie Mae HomePath?

Fannie Mae requires that you must not have held any type of homeownership in the last 3 years to qualify as a first-time buyer. You must also plan to use your HomePath home as a primary residence, and you need to move into the property in a timely manner, legally, within 60 days of closing.

Do HomePath loans still exist?

The Fannie Mae Homepath loan is a defunct mortgage program which reduced the cost of purchasing a foreclosed property for either personal use, or to “flip” for profit. ... Today, Fannie Mae still operates a Homepath website, on which it lists foreclosed properties for sale.

Can you buy a HomePath home with FHA loan?

Buying a Fannie Mae HomePath property

The first step in purchasing a HomePath house is to obtain mortgage pre-approval. Fannie Mae will allow for FHA, VA, USDA, and conventional mortgages. A pre-approval letter from the lender is not required when making an offer.

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Does HomePath pay closing costs?

HomePath “Ready Buyer” Pays Your Closing Costs

The Fannie Mae HomePath program is an excellent way for buyers and real estate investors to find homes for sale at a discount. ... Closing cost assistance is paid by Fannie Mae, and delivered to your closing.

How much of a down payment do I need for a Fannie Mae loan?

Fannie Mae's HomeReady® and standard loan programs require only a 3% down payment for a single-family home. You can use your own funds or get a gift donation from a family member. To buy a second home or an investment property, you need a down payment of 10% and 20%, respectively. Credit score.

Can anyone buy a Fannie Mae property?

But buyer beware: Buying a Fannie Mae home is different than a traditional private sale. Fannie Mae's homes are available to owner occupants as well as investors. ... After the First Look period expires, anyone, including investors, can submit an offer on that home.

Does Fannie Mae accept low offers?

HomePath Property Price Negotiation

In other words, if a property is in serious disrepair, Fannie Mae may be willing to accept a lower price, but you'll have to put money into the home, so it may not be as good a deal as buying a less damaged home at full price.

Can you negotiate a Fannie Mae home?

You can negotiate a Fannie Mae home by making an offer, but as with any home purchase contract, you may lose out to someone who is willing to pay more.

What banks offer Fannie Mae loans?

  • Arbor Commercial Funding I, LLC. Frank Lutz. ...
  • Bellwether Enterprise Real Estate Capital, LLC. Philip Melton. ...
  • Berkadia Commercial Mortgage, LLC. Steve Ervin. ...
  • Capital One, National Association. Kate Byford. ...
  • CBRE Multifamily Capital, Inc. Sarah Garland. ...
  • Cinnaire Corporation. Katey Forth. ...
  • Citi Community Capital. ...
  • Colliers Mortgage LLC.

How do I buy a Fannie Mae HomePath property?

If you decide to purchase a Fannie Mae HomePath property, you'll have to go through the following steps.
  1. Find a Real Estate Agent. The first step is to find an experienced agent you trust. ...
  2. Get Preapproved. ...
  3. Browse HomePath Properties. ...
  4. Complete the Buyer Education Course. ...
  5. Submit an Offer.

How do you buy a Fannie Mae foreclosure?

From Search to Purchase
  1. Prepare for a mortgage credit evaluation. ...
  2. Get pre-approved to buy a home. ...
  3. Visit the Fannie Mae website to view foreclosed homes for sale. ...
  4. Contact a licensed real estate agent to discuss Fannie Mae properties that you desire.

How long does it take to buy a HomePath property?

The standard closing period for HomePath buyers using NSP and other public funding assistance is 45 days, according to Fannie Mae. HomePath buyers then can expect to close on their properties anywhere from shortly after Fannie's offer acceptance up to 45 or so days later.

Is Fannie Mae better than FHA?

The difference between a FHA and Fannie Mae loans are that the FHA insured loan is a loan by The US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by a approved lender. ... The Fannie Mae loan has a higher credit score requirement at 620 to 640 which is higher than the FHA loan.

Can I buy a house with a 530 credit score?

The Federal Housing Administration, or FHA, requires a credit score of at least 500 to buy a home with an FHA loan. A minimum of 580 is needed to make the minimum down payment of 3.5%. However, many lenders require a score of 620 to 640 to qualify.

How do I make an offer on HomePath?

Submit your offer through an agent

Add your agent to your HomePath account to represent you through the transaction. They will submit the offer on your behalf. To get started on the offer process for a HomePath home, click on the “Add your agent to this property” button on the property details page.

What does it mean when Fannie Mae owns a house?

A Fannie Mae HomePath property is a house that's being sold directly by Fannie Mae to an investor or a traditional buyer. ... One is if the house has gone through foreclosure and Fannie Mae owned the mortgage on it. As the lienholder, Fannie Mae now owns the home.

Is it worth it to buy a foreclosed home?

The main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you'd pay for comparable, non-foreclosed homes. ... Foreclosed homes are sold in "as-is" condition, and are typically unavailable for a walk-through before purchase.

What is the ready buyer program?

WASHINGTON, DC – Today, Fannie Mae (FNMA/OTC) announced the HomePath ®Ready Buyer program, qualifying first-time homebuyers to receive up to three percent of the purchase price in closing cost assistance toward the purchase of a HomePath property, upon completion of an online homebuyer education course.

Can you buy a Fannie Mae home with cash?

Yes a Fannie Mae property can be purchased with cash. You will need to submit proof of funds with the offer. This can be a bank statement or a letter drafted on bank letterhead and signed by a bank official.

How do you qualify for Fannie Mae or Freddie Mac?

Fannie Mae and Freddie Mac have similar qualification requirements, which include:
  1. Debt-to-income (DTI) ratio as high as 43% or 50% in some cases.
  2. Credit score of at least 640 or 620 in some cases.
  3. Down payment as low as 3%

What is the minimum downpayment for a house?

The minimum down payment required for a conventional loan is 3%. And the minimum down payment for an FHA loan is 3.5%. Some special loan programs even allow for 0% down payments. But still, a 20% down payment is considered ideal when purchasing a home.

Are Fannie Mae loans hard to get?

Prospective homebuyers looking for a fixed-rate mortgage will need a credit score of at least 620. A minimum score of 640 is necessary to qualify for an adjustable-rate mortgage (ARM). ... Trying to get a Fannie Mae loan with bad credit is inherently more difficult, though.

What is 3 down payment on a house?

The 3%-down conventional mortgage

The standard 3%-down loan, known as the "Conventional 97," is available to first-time homebuyers, which is defined as at least one borrower hasn't owned a home within the past three years. There are no income restrictions, and pre-purchase homebuyer education is not a requirement.