Selling Guide

Published December 4, 2019

B5-4-03: Loans Secured by HomePath Properties (05/31/2016)

This topic describes exceptions to standard policies that are permitted for HomePath properties and delivery requirements, including:

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 interested party contribution (IPC) limit 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 IPC
Principal Residence Greater than 90% 6%

Note: DU is not able to determine if the subject property is a sale of a HomePath property. DU will issue a message if the amount of the IPC appears to exceed the standard limits described in B3-4.1-02, Interested Party Contributions (IPCs). The lender must determine whether the subject transaction is a purchase of a HomePath property eligible for the higher IPC limit 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 with an Eligible Exception

Lenders must use SFC 679 when delivering a loan secured by a HomePath property if the IPC exceptions apply 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.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcement SEL-2016–04 May 31, 2016
Announcement SEL-2016–03 March 29, 2016
Announcement SEL-2015–10 September 29, 2015
Announcement SEL-2014–10 July 29, 2014
Announcement SEL-2014–07 June 24, 2014