In 2009 Fannie Mae decided it would create amazing finance options for their foreclosed homes that were mounting. Here are some of the benefits Homepath loans offer.

These properties can be purchased as a primary residence, second home or investment.  If you plan to occupy the home, HomePath offers seller credits up to 6 percent to help offset closing costs. That’s double Fannie’s 3 percent limit for seller credits on conventional loans.  

Another cool feature … Fannie allows the buyer to choose the title company.  In a typical “bank owned” purchase transaction (except in California) the seller chooses the title company which many be located in a completely different part of the state. This can cause delays, high escrow charges and often complicates closing escrow.  

Fannie has made it easier to qualify for financing by lowering the adjustments for FICO scores below 720.  And … if you put 5 percent down instead of the minimum 3 percent, the LTV / interest rate adjustment is significantly less. 

To avoid mortgage insurance on a traditional conventional loan, you need 20 percent down payment.  Not true for HomePath. The minimum down payment is 3 percent.

Now that FHA appraisals are managed by the lender, they take longer.  Since NO appraisal is required, you not only save money… you save time closing escrow.