Fannie Mae Purchase 3% Down Program Details (HomePath Mortgage)
Maximum Loan Amount:
- 1 Unit $417,000 *** Alaska & Hawaii $625,500
- 2 Units $533,850 *** Alaska & Hawaii $800,775
- 3 Units $645,300 *** Alaska & Hawaii $967,950
- 4 Units $801,950 *** Alaska & Hawaii $1,202,925
Program Qualifications
- Eligible loans are conforming and high balance purchase loans receiving DU Version 9.0 or later Approve/Eligible findings
- Eligible properties must be owned by Fannie Mae (as a result of foreclosure or other similar action such as deed-in-lieu of foreclosure), sold by Fannie Mae to the borrower(s), and designated by Fannie Mae as eligible for a HomePath Mortgage.
- Files must be documented with the appropriate pages printed from www.homepath.com showing that the property was eligible for HomePath financing.
Borrower Investment
No minimum borrower investment required for:
- 1-unit Primary Residence
- Conforming ≤ 97%
- High Balance ≤ 80%
- 2-4 units Primary Residence ≤ 80%
- Second Homes ≤ 80%
- Gifts are acceptable
- 5% investment from borrowers own funds required for the following
- 2-4 unit Primary Residence > 80%
- High Balance Primary Residence > 80%
- Second Homes > 80%
- Gifts are permitted once the minimum borrower investment is met
Entire investment from borrowers own funds required for the following:
- All investment properties
- Gifts are not permitted
Appraisal Requirements:
No appraisal is required.
The sales price of the property (as evidenced by the sales contract between Fannie Mae and the buyer/borrower) will be used as the property value for purposes of loan delivery and for determining the LTV/CLTV/HCLTV.
If the borrower, at its option, chooses to obtain an appraisal, then:
- The borrower must order the appraisal from an appraiser selected by the borrower (and not one recommended by Lender), and the appraisal must be paid for by the borrower outside of the loan transaction
- Lender must not request a copy of the appraisal, but if one is provided by the borrower then it must be included in the loan file with a note that the appraisal was ordered by the borrower outside of the loan transaction and was not reviewed or approved by the Lender
- The property value shown on the appraisal will not impact the LTV calculation
- Lender must inform the borrower that the purpose of the borrower-ordered appraisal and its contents are for the use and information of the borrower only, and will not be considered for purposes of the loan transaction
Fannie Mae Purchase 3% Down requires delivery of property data such as the number of bedrooms and year built on the HomePath product. Since the HomePath product does not require an appraisal, it will be necessary to print out the property information containing the number of bedrooms and year built and rental income, if required, from Fannie Mae’s HomePath website: www.homepath.com.
