Fannie Mae home loans are some of the most popular types of loans in the United States. Fannie Mae, officially known as the Federal National Mortgage Association, is backed by the government and intended to help families with low to moderate incomes afford a home.
To secure this type of loan, you’ll complete a Fannie Mae home loan application with an approved lender. Fannie Mae does not issue home loans; instead, it provides funding to mortgage lenders by buying them from banks and other financial institutions. Learn more about Fannie Mae home loans, including types of mortgages available and how to qualify.
Thousands of mortgage servicers issue Fannie Mae home loans to prospective homebuyers across the country. Since Fannie Mae does not provide home loans to borrowers, you cannot apply for and get a Fannie Mae mortgage. Instead, you apply for a mortgage through a lender of your choice, who may issue a Fannie Mae home loan to you so you can finance the cost of a home.
Because of this, Fannie Mae mortgage rates vary by lender. They also vary depending on the borrower and type of home loan he or she wishes to secure.
The HomeReady mortgage is just one of several Fannie Mae home loans available to U.S. borrowers. Depending on a few factors, you may qualify for any of the following types of mortgages backed by Fannie Mae:
- HomeReady mortgage
- 97% LTV loans
- HFA Preferred
- HomeStyle Renovation
- HomeStyle Energy
Fannie Mae’s HomeReady mortgage is a low down payment mortgage option for several types of borrowers. If you identify as any one of the following types of borrowers, you may qualify for this type of home loan:
- Low income buyers
- First-time buyers
- Buyers with limited money for a down payment
- Buyers with credit scores of at least 620
Some Fannie Mae home loans, such as 97% LTV loans, are geared toward first-time homebuyers. These loan-to-value (LTV) loans fall under the same umbrella as the HomeReady mortgage, but are reserved for first-time buyers or those looking to refinance.
Like the HomeReady mortgage, borrowers securing a 97% LTV loan are only required to make a 3% down payment.
HFA Preferred mortgages are other types of Fannie Mae home loans that lenders can use to serve low-income borrowers. Lenders that offer these loans work closely with Housing Finance Authorities (HFAs) to offer affordable options, such as reduced mortgage insurance that can be cancelled. Borrowers to not need to be first-time buyers to qualify.
Mortgage lenders may also offer the Fannie Mae HomeStyle Renovation and HomeStyle Energy mortgages. These loans are designed to help buyers finance the cost of renovations, repairs or energy improvements into the home loan. The goal is to reduce utility costs and improve the comfort or safety of a home.Continue reading the next slide to learn how to qualify for Fannie Mae home loans and where to find these types of mortgages.
By Admin –
