Fannie Mae to End Their HomePath Mortgages

Fannie Mae will be doing away with their HomePath Mortgage effective October 6th and a new alternative will be offered called “financing flexibilities.”  We don’t know everything that will be involved with this loan but it is supposed to allow up to 6% of the sales price in “interested party” contributions , up from the 3% now with less than 10% down.  It will also allow for slightly higher financing on 5-10 financed properties, and to allow properties with Fannie Mae-imposed restrictions to qualify for Fannie Mae loans.

I was never a big fan of this loan anyway and it seems that Fannie Mae realized the risks involved in it too.