Why did HomePath down payment requirement change from 3% to 5%? 
Market conditions and mortgage programs frequently change.  However, this one came as a surprise since HomePath mortgages have historically require only 3% down payment for primary residence.   Fannie Mae changed lower maximum LTV (loan to value) ratios across the board for all their loan programs.  Now every Fannie Mae fixed rate transactions secured by a 1-unit primary residence require a maximum LTV ratio of 95% (instead of 97%). Therefore, effective on or after November 16, 2013, all HomePath financing loan applications submitted require at least a 5% down payment.

HomePath Mortgage still allows a buyer to purchase a Fannie Mae-owned property with no lender-requested appraisal and no mortgage insurance. They also allow for expanded seller contributions towards closing costs. HomePath is available for owner occupants as well as investors. The 10% down payment for investment properties using Fannie Mae HomePath remains the same.

Additionally, a limited number of HomePath lenders now offer HomePath Mortgage for the LLC borrower.  The HomePath Renovation Mortgage provides both the funds to purchase and to renovate in one loan.  Borrowers can utilize the financing of their choice from any lender to purchase a HomePath property and should compare all of their loan options to decide which one is best for them.