What is a Fannie Mae non-warrantable condo?
HomePath properties are foreclosure properties and deed-in-lieu-of-foreclosure properties owned by Fannie Mae. They are offered as short sale properties to potential buyers. These homes are found in various U.S locations. Some HomePath properties may require renovations in order to pass inspection if applying for a traditional loan.
Until October 2014, Fannie Mae offered HomePath loans. Alternatively, buyers were able to apply for a Fannie Mae HomePath loan, which had less stringent requirements than those of a regular home loan. For example, the HomePath loan didn't require mortgage insurance or an appraisal. Fannie Mae did not issue HomePath loans, instead authorizing select lenders to provide them. Though
HomePath loans had lower mortgage payments than traditional loans, interest rates were slightly higher. As of 2011, approximately 50 lenders nationwide issued HomePath loans. Buyers could also apply for a HomePath renovation loan to cover needed repairs and upgrades to the property; this loan did require a property appraisal. As of 2014, the HomePath renovation loan was discontinued as well.
Though these affordable loans were discontinued, HomePath properties are still readily available for purchase. Fannie Mae now offers alternative finance options for buyers interested in these properties, which are explained in detail on the HomePath website. Fannie Mae offers a selling guide detailing its three financing options: interested party contributions, multiple financed properties and resale restrictions.