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Fannie Mae HomePath Loans

The Fannie Mae HomePath Renovation Loan in New York allows for borrowers to purchase properties that require little to adequate renovations. Fannie Mae HomePath allows for borrowers to have both the purchase and renovation amount wrapped into one single loan. The maximum loan amount for moderate renovation is up to $35,000 in repairs or up to 35% of the future value.

The HomePath mortgage requires a minimum down payment of 3% versus 3.5% required for an FHA mortgage and both of the loan programs allow the down payment to be “given” to you under approved circumstances.

Benefits of Fannie Mae HomePath

There are many benefits for borrowers to take advantage of when going with a Fannie Mae HomePath Renovation, such as:

  • Both purchase and renovation amount is rolled into one loan.
  • Lower down payment with flexible mortgage terms.
  • 3% down payment is required and the source of funding can come from a gift, a grant, or nonprofit organization.
  • No mortgage insurance is required.
  • Can be applied to a primary residence, investment property, or a second home.

Unlike other loan programs, Fannie Mae HomePath is a perfect loan for first-time homebuyers given all the advantages. With Fannie Mae HomePath the occupancy status can be a second home or an investment home and does not need to be occupied as primary residence.

Eligible property types

  • 1-4 unit primary residences
  • Second homes
  • Investment Homes

Condominium projects must meet specific requirements before a lender can provide the funding for the individual units of the condominium. Most cases, with Fannie Mae HomePath most requirements can be waived, unless you plan on refinancing the loan or selling the condo.

Loan-to-Value (LTV)

LTV with the HomePath Renovation loan is up to 97% depending on the property type. Mortgage insurance is usually not required if your LTV is less than 80%.

Debt-to-Income (DTI)

The Debt-to-Income ratio for Fannie Mae HomePath does not allow a borrowrer to exceed 45%.

Credit Score Requirements

There is a minimum credit score of 620 for 80% or lower LTV and minimum score of 660 for 80.01% and above LTV.


Even though a non-occupant co-signer is allowed, Fannie Mae’s automated underwriting engine, Desktop Underwriting or DU, may require that the borrower must qualify for the mortgage based on their own financial capacity. This means that the occupant borrower must have all necessary documented income to support the particular loan request without considering the non-occupant/co-signer as a strength of additional income.


There is usually no appraisal required for the HomePath program through Fannie Mae and usually allows up to 97% financing available for primary residences and up to 90% for Second Homes and Investment Properties. Eligible Fannie properties require no PMI in most cases and also offers flexible mortgage terms, including; fixed-rate, ARMs, or the interest only payment feature.

Did You Know?
A rehab loan can be used for a purchase or refinance, and you do not have to be a first-time homebuyer to use it. Contact Us today at (844) 204-2035 to see how a 203(k) can increase the value of your property.

Which Rehab Loan Is Right For You?

(844) 204-2035

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