Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties

Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties

Effective 2025-05-07 · publisher's stamp for this provision

B5-4.2-03, Loans Secured by HomePath Properties (05/07/2025) Introduction This topic describes exceptions to standard policies that are permitted for HomePath properties and delivery requirements, including: Eligibility Exceptions for HomePath Properties Interested Party Contributions Certain Resale Restrictions Special Feature Code for HomePath Properties using the IPC Exception Loan-level Price Adjustment Credit for Appraisals Eligibility Exceptions for HomePath Properties A HomePath property is a property that was owned and sold by Fannie Mae through a transaction resulting in the disposition of its real estate owned (REO). When the property secured by the mortgage is a HomePath property, Fannie Mae will allow certain exceptions to standard Selling Guide eligibility policies as described below. Interested Party Contributions In cases where the subject property is a HomePath property, an exception to the maximum financing concessions for principal residences is permitted, as described in the table below. All other requirements related to IPCs, as described in B3-4.1-02, Interested Party Contributions (IPCs), continue to apply. Occupancy Type LTV/CLTV Ratio Maximum Financing Concessions Principal Residence Greater than 90% 6% Note: DU will issue a message if the amount of the IPC appears to exceed the standard financing concessions described in B3-4.1-02, Interested Party Contributions (IPCs). (DU does not apply the higher limit even if DU identifies the property as a HomePath property.) The lender must determine whether the subject transaction is a purchase of a HomePath property eligible for the higher financing concessions and document the loan file accordingly. Certain Resale Restrictions Notwithstanding any other provision of this Selling Guide, loans subject to resale restrictions imposed by Fannie Mae as the seller of its REO property are eligible. Special Feature Code for HomePath Properties using the IPC Exception Lenders must use SFC 679 when delivering a loan secured by a HomePath property if the IPC exception applies to the transaction. This code is in addition to any other special feature codes that may apply. SFC 679 is not required for a loan secured by a HomePath property that is subject solely to the resale restriction exception. Loan-level Price Adjustment Credit for Appraisals The lender will receive a $500 loan-level price adjustment credit when Fannie Mae purchases a loan secured by a HomePath property. The following requirements apply: The loan must be a purchase transaction for a principal residence underwritten with DU. The lender must obtain an appraisal for the transaction and pass the entire credit to the borrower to cover the cost of the appraisal. The lender must confirm the seller of the property is Fannie Mae (even though DU may identify the property as a HomePath property). The loan must be delivered with SFC 871.

Source: Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties · source URL · snapshot 2897f21e1e729b42