Fannie’s HomePath program lets borrowers put down as little as 3%, without paying for mortgage insurance.
There are of course lender “add-ons” that need to be considered and factored when comparing this program to your standard FHA.

Here is a link to Fannie Mae’s site in which you may obtain more details and a list of lenders cooperating with this program:

http://fanniemae.com/kb/index?page=home&c=search&startover=y&q=home+path

*Allows for lower FICO scores on high LTV (Loan To Value) loans. (660/Avg)
*Appraisals, a traditional prerequisite for getting a mortgage, are optional under HomePath.
*Fannie’s inventory is about 87,000 homes currently. This means they have taken these homes back and under their charter, have the ability to offer flexible terms not traditionally availble.
*28 lenders around the country originate HomePath loans, then sell them to Fannie.
Incentive till May 1, 2010
Avoiding mortgage insurance premiums does not make HomePath a slam-dunk choice for borrowers, since lenders often charge additional fees for the loans. To avoid paying a higher rate, many borrowers will increase their down payment, a Fannie spokeswoman said. Fannie sweetened its incentives last month by agreeing to cover 3.5% of the closing costs of those who buy a HomePath property by May 1.
*HomePath is another way that Fannie and Freddie Mac are different.  Even though both have operated under Federal Housing Finance Agency conservatorship since 2008. Freddie’s HomeSteps unit is marketing the GSE’s seized properties without offering any special financing. None is needed, Freddie says.

*BofA and Wells, which together make up 63% of the origination market, are at this time not offering this program. Industry insiders report that since they have their own REO’s, they don’t see the benefit of taking on more high risk loans at this point.

Chris Miscellaneous