Freddie and Fannie try to make it easier for you to buy a home, not like it's been that hard in the last few years.
Sometimes, here in Phoenix, and other parts of the nation, you will come across a home for sale in which you will be encouraged to use either "Homepath", or "Homesteps".
Let's look at "Homepath" first. This is a program for homes that are owned by Fannie Mae. Naturally, they need to shift their inventory, so they are trying to make the home-buying process as streamlined as possible. No appraisal is required as they have priced the home right at market, allegedly, although that doesn't mean you have to offer full price: bargain away. A down payment of 3% is usual, although seller's can contribute up to 6% of purchase price towards closing costs. Also, investors can buy 1-2 unit buildings with only 10% down.
"Homesteps" is a similar program offered by Freddie Mac for homes which it owns (REOs). They are trying to combat the notion that foreclosed homes are wrecks (they often suffer damage at the hands of spiteful owners) and will mildly re-hab a property to enhance its chances of selling. Typically, that would include fresh paint, carpet and, in some cases, new appliances.
Finally, you may come across a program, from non-government lenders, called "Express Path". Supposedly, they are pre-inspected, pre-appraised, low closing-cost, ready to buy homes. Of course, all those services are paid for in the asking price, there is no free lunch. This allows a speedy close, but to whose benefit? Some processes need not, and should not, be rushed. Industry fondness for this program seems to be mixed. Remember, one stop shopping rarely benefits the buyer, as the savings are not passed on, but retained, as profit.
Caveat emptor!
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