source:
  type: guide
  id: fnma-sel-b5-4.2-03
  authority: Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties
  description: Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties.
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-4.2-03-full
  canonical_id: fnma-sel-b5-4.2-03-full
  section: Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B5-4.2-03 — Loans Secured by HomePath Properties
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: '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. Published May 6, 2026 765
      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. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SEL-2025-03
      May 07, 2025 Announcement SEL-2022-01 February 02, 2022 Chapter B5-5, Community
      Seconds, Loans with Resale Restrictions, and Shared Equity Transactions Introduction
      This chapter describes product policies and requirements for Community Seconds,
      loans with resale restrictions, and shared equity transactions. Published May
      6, 2026 766 Section B5-5.1, Community Seconds'
  judgment: false
