Fannie Mae offered special financing for its REO properties via its Homepath program for about five years. It came out with big fanfare in 2009 b/c it offered special financing with only 5% down, no PMI, etc.
Few of our borrowers ever opted to pursue Homepath financing, however, b/c the rates were so high. Homepath was only advantageous when properties were not “financeable” with conventional or FHA financing. Non-financeable properties include non-FHA approved Condos, Condos with HOA issues, and properties with condition and permit issues.
In any case, Homepath disappeared in late 2014 and nobody really noticed b/c so few people used it. We only recently found out ourselves, and hence this blog.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
