Dive Brief:
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Fannie Mae’s HomePath program, which provides quick financing for buyers of foreclosed homes, will end on Monday.
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Through the program, buyers who agreed to live in the homes were required to pay only 3% down. Those who intended to make a Fannie Mae-owned property their second home made 10% down payments, and investors had to put 15% down—all less than the standard down payments.
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Other favorable terms for the real estate owned or REO properties: no appraisals, no private mortgage insurance and quick closing times. Borrowers, who needed a credit score of at least 660 and had to take out loans of at least $50,000, also were allowed to fund their down payments with gifts, grants, savings accounts or loans from nonprofits.
Dive Insight:
The end of the popular program could be a sign that the country’s leading secondary market source of mortgage credit sees fewer foreclosures and a healthier housing market on the horizon.
