Even as Fannie Mae tightens standards on most new mortgages, the government-sponsored enterprise is offering buyers of its repossessed homes financing with some of the most generous terms available today.

Fannie's HomePath program lets borrowers put down as little as 3%, without paying for mortgage insurance, which is usually required for conforming loans where the borrower has less than 20% equity. HomePath also accepts borrowers with credit scores as low as 660 — 60 points below lenders' standard cutoff for loans headed to Fannie. Appraisals, a traditional prerequisite for getting a mortgage, are optional under HomePath.

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