Fannie Mae has launched a website called HomePath to sell off it’s book of  real estate owned (REO).  In addition, they have rolled out a new loan program with the same name to facilitate faster sales of these REO properties.  My company, Morningside Mortgage is eligible to issue loans for these properties through Flagstar Bank.

In what may become a model for other lenders who have foreclosed properties to sell, the Fannie Mae HomePath program has the following features to speed absorption of their properties back into the market:

  • No appraisal required – Purchase price is used as the appraised value.  
  • 5% down payments – no mortgage insurance required (this is especially a big deal in Florida as there is none available for Condos)
  • Available for qualified first time homebuyers AND investors
  • All levels of credit are accepted
  • Buyer may have up to 10 financed properties

Personally, I just think it’s a shame they took this long to come up with this type of program in the current environment.  Perhaps they will also allow banks to start selling some of their REOs and sell them to Fannie Mae to facilitate moving more REO off the books and back into homeowner hands?