Fannie Mae HomePath and Freddie Mac HomeSteps: How Agents Show and Sell These Bank-Owned Homes

The short answer

Fannie Mae HomePath is Fannie Mae's site for homes it owns after foreclosure. Freddie Mac HomeSteps is Freddie Mac's version. Both are bank-owned (REO) homes, sold as-is through a local listing agent. Both run a "First Look" window when only owner-occupants and certain nonprofits and public entities can make offers. Any licensed agent can bring an offer, following the listing's instructions.

Step by step: Fannie Mae HomePath and HomeSteps offers

Here's how I do it with a buyer.

1. Search the official sites. Have buyers search homepath.fanniemae.com and homesteps.com. These homes also show in the MLS, but the official site shows the First Look status and any current incentive.
2. Check the First Look countdown. The listing shows it. Historically the window has been 20 days (30 in Nevada). During it, owner-occupant buyers and certain nonprofits and public entities can offer. Investors wait. Read the listing; the countdown controls, not this page.
3. Qualify the buyer before you show. Pre-approval or proof of funds. Some homes won't pass a lender's property rules as-is. See how to qualify a buyer before the lender.
4. Inspect. These are sold as-is. That doesn't mean "don't look." It means the seller usually won't fix things. Budget for inspections, and check utilities rules on the listing.
5. Read the listing agent's instructions. Offers go through the listing agent, often on an online platform such as Equator. The instructions say what to upload: contract, pre-approval or proof of funds, earnest money details and any owner-occupant certification.
6. Submit a clean offer. Your state contract plus the seller's addenda. The addenda usually override parts of your contract. Read every page with your buyer.
7. Expect counters and short deadlines. Asset managers often counter on price, closing date and terms. Responses can be slow, but your deadlines will be short. Calendar everything.
8. Close on time. Late closings can mean per-day fees or cancellation under the seller's addendum.

HomePath and HomeSteps vs HUD homes

For the HUD side, see how HUD homes work and HUD owner-occupant vs investor bid periods.

Incentives come and go

Fannie Mae and Freddie Mac sometimes offer buyer incentives, such as help with closing costs, often tied to owner-occupants or a set time window. They change. Some old blog posts still talk about special HomePath mortgages and incentives that ended years ago. Don't quote anything you didn't see on the official site that week. Screenshot the incentive and the date when your buyer relies on it.

Financing on HomePath and HomeSteps homes

These homes can be bought with cash, conventional, FHA, VA or a renovation loan, if the buyer qualifies and the home meets the loan's property rules. Condition is the catch. A home with missing systems or safety issues may not pass an FHA or VA appraisal. A renovation loan or cash may be the path then. The lender decides. FHA property rules are in HUD Handbook 4000.1. Never quote a rate, payment or down payment to the buyer. Send them to a licensed loan officer.

How to explain it to your client

Watch-outs

• The countdown controls. Check First Look on the listing every time. Don't rely on what a buyer read online.
• Certification is serious. An owner-occupant certification is a promise. A buyer who plans to rent it out shouldn't sign it.
• Seller addenda override. They often shorten deadlines, limit disclosures and set late-closing fees.
• No repairs promised. Ask, but expect "as-is" to mean as-is.
• Old incentive posts. If it isn't on the official site today, it doesn't exist.
• Compensation. Check what the listing shows for buyer-broker compensation, and have your own buyer agreement in place.
• Fair housing. Talk about the home and the process. Never describe an area by who lives there.

Sources

• Fannie Mae HomePath
• Freddie Mac HomeSteps
• HUD Home Store
• HUD Handbook 4000.1

Further reading

• Bank-owned homes in Colorado on kennarealestate.com
• HUD home vs bank-owned vs short sale on denver-hudhomes.com

Keep going

• Buying a bank-owned home: the buyer side
• What is REO (real estate owned)?
• How HUD homes work
• Bank-owned REO vs HUD vs short sale

Want to practice this conversation first? The role-play coach lets you run it out loud and get scored.

This is training for real estate agents. It isn't legal, tax, lending or appraisal advice. Program rules change; check the official source. Check with your managing broker.

Frog tip: For relocation buyers, narrow the map before you show houses. A perfect house in the wrong commute is still the wrong house. Learn more →

Questions

What is a Fannie Mae HomePath property?

A home Fannie Mae owns after a foreclosure, listed on HomePath and sold as-is through a local listing agent.

What is the HomePath First Look period?

A window when only owner-occupant buyers and certain nonprofits and public entities can make offers. Historically 20 days (30 in Nevada). The listing shows the countdown.

Can any agent submit an offer on a HomePath or HomeSteps home?

Yes, a licensed agent can submit through the listing agent, following the listing's instructions. HUD homes are different; they need a HUD-registered broker.

Can I use FHA or VA on a HomePath home?

Often, if the buyer qualifies and the home meets the loan's property rules. The lender decides.

Is a HomePath home the same as a HUD home?

No. HomePath homes are owned by Fannie Mae and sold by negotiated offer. HUD homes are owned by HUD and sold by sealed online bid.

Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.