A Fannie Mae HomePath property is a foreclosed home that’s been taken back by Fannie Mae.
If a homeowner with a Fannie Mae-owned mortgage stops making payments and goes through foreclosure, Fannie Mae takes ownership of the home and sells it.
These homes are often priced below similar properties in the area, making them appealing to budget-conscious buyers. However, they’re almost always sold as-is, so it’s important to budget for any needed renovations and get a professional inspection.
Some HomePath homes qualify for special programs. The HomeReady® mortgage offers a low down payment option, while the HomePath Ready Buyer™ program gives first-time buyers up to 3% toward closing costs if they complete the HomeView® education course.
Both owner-occupants and investors can purchase HomePath properties, but Fannie Mae gives priority to buyers who plan to live in the home. Because competition can be strong and the homes may need work, success often comes down to acting quickly, knowing your budget, and preparing for repairs.
Who can buy a Fannie Mae HomePath property?
Almost anyone can buy a HomePath property as long as they meet the requirements.
Here’s how it works for each group:
- First-time homebuyers: Get 30-day First Look™ priority. Must plan to live in the home as a primary residence, move in within 60 days of closing, and stay for at least 12 months.
- Repeat homebuyers: Same rules as first-timers if buying as an owner-occupant.
- Nonprofit and public organizations: Certain approved mission-based groups, such as housing nonprofits or local government entities, can buy during the First Look period.
- Investors: Can buy after the First Look period ends. Includes buyers purchasing for rentals, flips, or second homes.
- Cash buyers: Welcome in any category. You must show proof of funds before closing.
Basic requirements include a minimum 3% down payment (if financing), a credit score of 620+, and a debt-to-income ratio under 38%.
💡 Tip: Many buyers use Fannie Mae’s financing programs to take advantage of low down payments and closing cost help.
Can real estate investors buy HomePath properties?
Yes, real estate investors can buy a Fannie Mae HomePath foreclosure property, but they can’t make an offer right away.
Once the 30-day First Look window closes, the property becomes available to investors. At that point, offers are considered on a first-come basis. Competition can be high, especially for properties in good condition or desirable neighborhoods.
The key challenge for investors is that HomePath homes are sold as-is, with no repairs or warranties from Fannie Mae. Savvy investors budget for inspections, repairs, and potential delays before the home can be rented or resold.
Pros of buying a HomePath property
Buying a Fannie Mae HomePath property can be a smart move.
Main benefits include:
✅ Discounted prices. Many HomePath homes are listed below market value to help them sell quickly.
✅ Low down payment financing. Eligible for HomeReady® mortgages and other financing for HomePath with down payments as low as 3%.
✅ Closing cost assistance. First-time buyers who complete the HomePath Ready Buyer™ program can get up to 3% toward closing costs.
✅ First Look™ advantage. Owner-occupants have a 30-day window before investors can make offers, reducing early competition.
✅ Variety of properties. Options include single-family homes, condos, multi-units, and sometimes land.
✅ Easy online search. The HomePath website allows you to filter by ZIP code, price, property type, and more, with notifications for new listings.
Cons of buying a HomePath property
While HomePath homes can be a bargain, they’re not without risk. Some buyers have even shared “Fannie Mae HomePath nightmare” stories about costly hidden repairs or long delays.
What are the disadvantages to buying a Fannie Mae HomePath property?
❌ As-is condition. Fannie Mae makes no repairs and offers no warranties.
❌ No seller-paid repairs. You won’t get repair credits or fixes from Fannie Mae.
❌ Limited disclosures. Fannie Mae may not know the home’s full history or problems.
❌ Possible long closing times. It can take up to 45 days to close, and delays are not uncommon.
❌ Repairs can be expensive. Some buyers report Fannie Mae HomePath “nightmare” scenarios, like hidden asbestos, plumbing issues, or poorly done renovations.
❌ Location limits. Inventory is tied to foreclosure activity, so you might not find a home in your target neighborhood.
❌ No home sale or financing contingencies. If you need to sell a home or get mortgage loan financing, you cannot include a contingency in the purchase agreement to protect you if the home doesn’t sell or you can’t get financing. There are ways to legally cancel the purchase, but there’s no guarantee you will get your earnest money back.
❌ Complicated negotiations. Purchasing a home from a government-sponsored entity means most communications happen via the company’s website or Fannie Mae representatives. They also use their own standardized federal forms for purchase agreements.
Real-life Fannie Mae HomePath example
As a real estate agent in Indiana, I’ve helped several clients buy HomePath homes.
Making dreams come true
The biggest pro is that HomePath opens the door to homeownership for more types of buyers. Being at the closing table when my clients get the keys to their new home is always rewarding.
Offer process
Submitting an offer on a HomePath property is different but fairly straightforward. Instead of a traditional 7–10 page purchase agreement sent to a seller’s agent and e-signed, we complete a short online form and upload documents (proof of funds or a mortgage pre-approval) directly to the HomePath portal.
Less control
The downside is losing control and speed. Agents can’t add custom contingencies or set a response deadline like we can with traditional forms.
Communication is also slower — I can’t just call the listing agent for quick updates or negotiate in real time. Responses from Fannie Mae might come in a day or a week, but almost never after hours or on weekends.
Another challenge is that HomePath homes usually don’t come with a seller’s disclosure, which means buyers have less insight into possible issues before making an offer.
Buyers on a time crunch should be prepared to purchase as-is
Negotiating with a government entity is not like working with an individual seller.
For example, one client’s VA loan was delayed when water tests revealed lead and bacteria in the home’s well. Normally, I’d work directly with the seller’s agent to get quick estimates and agree on repairs within a week. With HomePath, the listing representative had to submit an online request to Fannie Mae and wait.
After weeks of back-and-forth, Fannie Mae agreed to fund the filtration system and shock the well — an uncommon accommodation. But what should have been a 30-day closing stretched to almost four months.
Key differences between HomePath and traditional real estate transactions
| Feature | HomePath Transaction | Traditional Real Estate Transaction |
|---|---|---|
| Who Owns the Home | Fannie Mae, a government-sponsored enterprise | Individual homeowner(s) |
| Primary Contact | Communication goes through buyer’s agent to the listing representative, who relays messages to HomePath associates | Buyer’s agent speaks directly with the listing agent, who contacts the seller |
| Speed of Communication | Slower responses due to corporate processes and limited hours | Faster, more flexible responses |
| Negotiation Flexibility | Offers are handled through a formal online system; back-and-forth negotiation is slow and limited | Negotiations can be more personal and flexible, with room for creative solutions that can be executed quickly |
| Condition of Home | Sold strictly as-is; repairs by Fannie Mae are rare and must be approved through their process | Repairs may be negotiated as part of the sale, or the seller may voluntarily make fixes |
| Buyer Priority | 30-day First Look™ period gives priority to owner-occupants before investors can submit offers | No formal waiting period — investors and owner-occupants can compete from day one |
| Financing | Accepts most financing types, but home must meet lender property standards; some homes may not qualify for certain loans | Accepts most financing types if the home meets lender requirements; typically easier to resolve financing issues |
| Extras for Buyers | May qualify for programs like HomePath Ready Buyer™ or HomeReady® mortgage for closing cost help or low down payment | No special programs tied to the listing itself (programs may be available through your lender, nonprofit organizations, and sometimes local government) |
| Emotional Connection | Transaction is purely business-focused; no seller emotions or personal ties | Sellers may be emotionally invested in the sale, which can sometimes work to a buyer’s advantage |
Who should (and shouldn’t) buy a HomePath home?
Buyers who are budget-conscious, open to making repairs, and want to take advantage of special Fannie Mae programs should consider buying a HomePath home.
On the other hand, buyers who need a quick closing, want heavy negotiation flexibility, or require certain contingencies may want to look elsewhere.
Who should buy a HomePath home
A HomePath home is a great option if you:
Are on a budget
HomePath homes are often priced below market value, making them attractive for buyers trying to stretch their dollars.
Are a first-time homebuyer
You may qualify for the HomePath Ready Buyer™ program, which offers up to 3% in closing cost assistance if you complete the free HomeView® education course before making an offer.
Want to use a Fannie Mae program
These properties are eligible for certain Fannie Mae mortgages and down payment assistance options, like the HomeReady® loan, which allows as little as 3% down.
Are okay with buying as-is
Fannie Mae sells HomePath homes without repairs or warranties. Occasionally, they may approve a repair after you’re under contract, but it’s rare and can take significant time.
Don’t need contingencies
Fannie Mae doesn’t allow home sale or financing contingencies, so you must be ready to close even if your current home hasn’t sold or your financing changes.
Who shouldn’t buy a HomePath home
This may not be the best path for you if you:
Are on a time crunch
The offer process and impersonal communication with Fannie Mae can create snags and slowdowns if you end up needing to negotiate or anything.
Don’t want to handle repairs
These homes are sold as-is, so you’ll almost certainly be responsible for any fixes after closing, since Fannie Mae is rarely willing to cover repairs unless absolutely necessary.
Need a home sale or financing contingency
These aren’t allowed for HomePath purchases, which puts your earnest money at risk if something falls through.
Are a house flipper or time-sensitive investor
You’ll have to wait until after the 30-day First Look™ period to make an offer, and the process may not suit quick turnaround timelines.
Alternatives to HomePath
If some aspects of buying a HomePath home appeal to you but others are deal-breakers, consider these alternatives:
- HUD homes. These are foreclosures owned by the Department of Housing and Urban Development, often sold at discounted prices to owner-occupants before investors can bid. They have their own rules and timelines but can offer similar savings.
- Auction properties. These may sell quickly and at competitive prices but often require cash purchases and come with little to no opportunity for inspections or repairs. You can find them by checking local courthouse auction schedules, real estate auction websites, or working with agents who specialize in distressed properties.
If you understand the trade-offs, a HomePath property can be a smart move. But if speed, contingencies, or guaranteed repairs are priorities, you may be better off exploring other buying options.
» MORE: How to Buy a HUD Home | Realtor Asking for Proof of Funds: What's Next?
Step-by-step: How to buy a Fannie Mae HomePath property
Buying a HomePath foreclosure can look a little different from a traditional home purchase. The process is fairly straightforward once you understand the rules and requirements.
Here’s exactly how to buy a HomePath home from start to finish.
1. Find a real estate agent
You do not need a specific kind of real estate agent to help you buy a HomePath home (ie. one who specializes in foreclosures), but it helps if they’ve had experience in HomePath transactions.
You do need a licensed real estate agent in order to make an offer on a HomePath home. That agent will use their HomePath account to will submit your offer through the HomePath platform.
» NEED AN AGENT? Match with top local agents through Clever, get cash back when you buy
2. Determine your budget
Start by figuring out how much house you can afford, including the cost of possible repairs.
You can:
- Use Fannie Mae’s Affordability Calculator to plug in your income, debts, and down payment.
- Compare the “max monthly payment” with your current housing costs.
- Review your budget with both your agent and mortgage broker to spot expenses you may have missed, like inspections, appraisals, or post-closing repairs.
3. Learn your financing options
You can buy a HomePath home with almost any standard loan type or with cash, as long as the home meets the lender’s minimum property condition standards.
Since HomePath homes are typically sold as-is, major defects can disqualify them for certain types of financing unless repairs are made first (and Fannie Mae rarely makes repairs).
4. Get a mortgage preapproval
Preapproval isn’t required for a HomePath offer, but it greatly strengthens your odds of getting your offer accepted in any market. A preapproval letter shows Fannie Mae you’re financially ready and lets you act fast.
5. Find and tour HomePath properties
Search the HomePath.com database by ZIP code, price, size, property type, or listing status (“Just Listed,” “Price Reduced,” etc.).
Important: The HomePath database may show you all listings within your area’s MLS. Be sure you’re filtering search results so that you only see HomePath homes.
6. Make an offer
Your agent will submit an offer on your behalf through the HomePath portal. If you are financing the purchase, you’ll want to have your mortgage pre-approval ready so your agent can upload it with your offer.
Your agent will let you know exactly what you need, but be prepared to have cash for the earnest money deposit.
Once submitted, your agent can track your offer in their HomePath account. If there are competing offers, Fannie Mae will give you a deadline to submit your highest and best offer.
If you’re taking the HomeView® course, that should be completed before your offer is submitted.
7. Inspect the property
If your offer is accepted, you’ll want to get an inspection. Inspections are not required, but any good agent will strongly recommend one — especially on HomePath homes, which may have been vacant for years.
You and your agent will usually have about 10–15 days to get the inspection booked, completed, and the report delivered to you.
If any issues are found, your agent might be able to negotiate with Fannie Mae to get repairs done — however, Fannie Mae agreeing to and funding repairs before closing is somewhat rare. If not, your agent can submit paperwork in most cases that allows you to walk away from the deal cleanly.
8. Close on the home
Closing on a HomePath home usually takes up to 45 days. During this time, your lender finalizes the loan, the title company prepares documents, and you handle tasks like securing homeowners insurance. Stay responsive to any requests from your lender or agent to avoid delays.
At closing, you’ll sign all required paperwork, pay your down payment and closing costs, and the lender will send funds to Fannie Mae. Once recorded, the home is officially yours.
Fannie Mae financing options
Before you start shopping for a HomePath home, review your budget and see which financing options fit. Fannie Mae offers two programs that work especially well with HomePath purchases, both focused on low down payment financing.
HomeReady Mortgage
- Best for low- to moderate-income buyers
- Requires a 620+ credit score
- Income must be no more than 80% of the area median (check Fannie Mae’s lookup tool)
- Down payments as low as 3%
- Allows co-borrower income from someone who won’t live in the home
- Lower mortgage insurance costs than most conventional loans
The HomeReady Mortgage option is a strong fit if you want to keep upfront costs low while maintaining a manageable monthly payment.
HomePath Ready Buyer
- Designed for first-time buyers.
- Offers up to 3% of the purchase price back as a closing cost credit.
- Must complete the free HomeView® course before submitting your offer.
- Can be combined with HomeReady or another eligible loan.
Example: On a $200,000 home, the closing cost credit could save you up to $6,000.
Other financing options
If you don’t qualify for these Fannie Mae programs, you can still buy a HomePath property with:
FHA, VA, and USDA loans
These government-backed loans are known for low or no down payments. They’re generally easier to qualify for with a lower credit score as well.
- FHA: As little as 3.5% down, open to a wide range of credit scores.
- VA: No down payment for eligible veterans, service members, and some surviving spouses.
- USDA: Around 1% down payment (or even 0%) for eligible rural/semi-rural homes.
Drawback: These loans require the home to meet strict safety and habitability standards. If the property has peeling paint, roof leaks, or outdated wiring, your loan may be denied unless the issues are fixed before closing.
Conventional loans
Often require 5–20% down and still have property standards, but lenders may be slightly more flexible than FHA, VA, or USDA. These can be a better fit if the home only needs minor cosmetic work. Higher credit scores are usually needed.
Renovation loans like FHA 203(k) or conventional rehab
These roll the purchase price and repair costs into one mortgage. They can work for HomePath properties that meet basic safety requirements but need updates. Check that your lender will approve a loan for a HomePath home first before making your offer.
Also do your research, as these loans come with a handful of different rules and restrictions: For example, you usually cannot do the work yourself.
Cash
You can buy a HomePath home with cash. If you’re a cash investor, however, just remember you have to wait until the 30 day First Look period is over before you can purchase.
Summary
A Fannie Mae HomePath property is a foreclosure sold directly by Fannie Mae, often at a discounted price. The HomePath program gives owner-occupants a 30-day First Look period before investors can make offers.
These homes are sold as-is, so buyers should budget for repairs and understand that Fannie Mae rarely agrees to fix issues after the offer stage.
If you’re ready to explore HomePath homes, start at HomePath.com to browse listings and connect with a real estate agent who’s registered to submit offers through the portal.
FAQ
What is a Fannie Mae HomePath foreclosure property?
A HomePath property is a foreclosed home that’s owned by Fannie Mae and sold through theHomePath program. They’re primarily targeted towards lower-income and first-time homebuyers, but anyone can buy one. These homes are typically sold at a discount and in as-is condition, meaning Fannie Mae won’t make repairs before closing.
Can I buy a HomePath property with cash?
Yes. You can buy a HomePath home with cash or almost any type of financing, as long as the home meets the lender’s property standards. Note that some HomePath listings may inform potential buyers in advance about what type of financing is or is not accepted on that listing. Work with an agent to make sure you have all the details.
What are HomePath property requirements?
You’ll need a registered real estate agent, and either cash or financing that meets your lender’s property standards. First-time buyers using the Ready Buyer program must complete the free HomeView course to qualify for the 3% closing cost credit. HomePath homes are sold as-is, so be prepared for possible repairs after closing.
How long do I have to live in a Fannie Mae home?
Owner-occupants must live in their home for at least a year. This rule helps ensure the program benefits home buyers rather than investors.