Fannie's Homepath program lets borrowers put down as little as 3%, without paying for mortgage insurance. There are of course lender "add-on" that need to be considered and factored when comparing this program to your standard FHA.
Here is the Fannie Mae site in which you may obtain more details and a list of lenders cooperating with this program. Just cut and paste to your computer:
1) Allows for lower FICO scores on high LTV (loan to value) loans. (660 /avg)
2) Appraisals, a traditional prerequisite for getting a mortgage, are optional under Homepath.
3) 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 traditionaly available.
4) 28 lenders around the country originate Homepath loans, then sell them to Fannie.
Find Homepath Mortgage Lenders (listed by state!): Just cut and paste to your computer: