Buying your first home can be challenging—especially when closing costs add thousands of dollars to your upfront expenses.
The HomePath Ready Buyer program, offered by Fannie Mae, is designed to help eligible first-time homebuyers purchase Fannie Mae–owned (REO) properties by offering closing cost assistance, making homeownership more accessible for buyers with limited savings.
This guide explains how the HomePath Ready Buyer program works, who may qualify, and how it compares to other first-time homebuyer loan options.
What Is the HomePath Ready Buyer Program?
The HomePath Ready Buyer program is a Fannie Mae initiative that provides eligible first-time homebuyers with closing cost assistance when purchasing a HomePath property (a home owned by Fannie Mae after foreclosure).
Under this program, qualified buyers may receive up to 3% of the purchase price as a credit toward eligible closing costs and prepaid expenses.
Important to know:
- The credit applies only to HomePath properties
- It is used for eligible closing costs, not for down payment
- Program eligibility and benefits depend on current guidelines
Key Benefits of HomePath Ready Buyer
1. Closing Cost Credit of Up to 3%
Eligible buyers may receive a credit that helps reduce out-of-pocket closing expenses.
This can be especially helpful for first-time buyers who can afford monthly payments but struggle with upfront costs.
You’re generally considered a first-time buyer if you haven’t owned a primary residence in the last three years.
3. Required Homeownership Education Course
Buyers must complete the HomePath Ready Buyer online course, which covers:
- Homeownership responsibilities
- Budgeting and credit basics
- Understanding mortgage payments and costs
This education requirement is designed to help buyers make informed decisions.
4. Access to Fannie Mae HomePath Properties
HomePath homes are Fannie Mae–owned REO properties, often priced competitively compared to similar homes on the open market.
HomePath Ready Buyer vs Other First-Time Buyer Programs
Here’s how HomePath Ready Buyer stacks up against other popular first-time homebuyer options:
Feature | HomePath Ready Buyer | FHA Loan | Conventional 97 | HomeReady® |
| Down Payment | As low as 3% | 3.5% minimum | 3% minimum | 3% minimum |
| Closing Cost Assistance | Up to 3% credit from Fannie Mae | None (but seller/lender contributions allowed) | None (seller/lender contributions possible) | May allow grants & assistance programs |
| Mortgage Insurance | PMI required if <20% down | Mandatory upfront & monthly MIP | PMI required if <20% down | Reduced MI for qualified borrowers |
| Property Type | Only Fannie Mae-owned REO homes | Any eligible home | Any eligible home | Primary residences only |
| Education Requirement | Mandatory online course | Not required | Not required | Required for some borrowers |
| Best For | Buyers looking for discounted Fannie Mae properties with closing help | Buyers with lower credit or savings | Buyers with stable income, little savings | Low-to-moderate income buyers |
Key takeaway:
HomePath Ready Buyer is best for first-time buyers who want closing cost help and are flexible about purchasing a Fannie Mae–owned property.
Who May Qualify for the HomePath Ready Buyer Program?
Eligibility typically includes:
- First-time homebuyer status (no homeownership in the past 3 years)
- Completion of the HomePath Ready Buyer education course
- Purchase of an eligible HomePath property
- Meeting standard credit, income, and underwriting requirements
Program availability and requirements are subject to Fannie Mae guidelines and lender review.
Why Choose Loan Factory for a HomePath Ready Buyer Purchase?
Because the HomePath Ready Buyer program is property-specific and guideline-driven, working with a lender who can review eligibility—and compare alternatives—is critical.
Loan Factory helps buyers evaluate HomePath options side by side with other first-time buyer loan programs, so you can choose the structure that fits your situation best.
Why Homebuyers Choose Loan Factory
- Best Price Guarantee: If Loan Factory can’t beat a competitor’s official offer, you may receive $1,000 (Terms & Conditions apply.)
- Zero application or junk fees
- Transparent comparison of 242+ wholesale lenders
- Local loan advisors for personalized guidance
- AI-powered MOSO platform for faster scenario review and real-time pricing
- Trusted guidance from Loan Factory, led by Thuan Nguyen (#1 Loan Officer in the U.S.)
Take the Next Step
Based on real-world first-time homebuyer scenarios reviewed by Loan Factory’s lending team across multiple U.S. markets.
Disclaimer
This article is for informational purposes only and is not a commitment to lend. Program availability, eligibility, and benefits depend on credit, underwriting, property eligibility, and investor guidelines.
FAQs About the HomePath Ready Buyer Program
