Fannie Mae ended the HomePath Mortgage program in October of 2014. While this does eliminate two mortgage loan options for home buyers, it's not the end of the mortgage financing world.In fact, you still have many options for buying a home when it comes to mortgage options.
In a post-HomePath world, your home financing options are still varied. Before we get to your mortgage loan options, let's look at why Fannie Mae is shutting down HomePath. This change has come about because the number of properties it owns has dwindled. This is good for the housing market, because it generally means the number of foreclosed homes on the market has dwindled. The push to buy foreclosures at reduced prices has slowed.
With that said, when you're looking to finance a foreclosure that doesn't need much renovation work, you can use conventional lending. You could potentially get a regular conventional mortgage for as little as 5% down, just like HomePath offered.
You could also use the FHA 203k renovation loan or the HomeStyle Renovation loan if the property needs work. Each of these loan options essentially works the same as the HomePath Renovation loan did. You finance the purchase and remodeling of the home with one mortgage.
If you're looking for a low-down payment option that HomePath financing offered, you still have options like USDA Rural Development and FHA Loans.
For renovation mortgages:
For low-down payment mortgages:
You can learn more about mortgage loan options AmeriFirst Home Mortgage offers with the guide below.