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Fannie Mae Loans |
Fannie Mae Loans are made available to low and moderate income families through a number of banks and financial institutions operating in the United States. Fannie Mae is officially known as The Federal National Mortgage Association and it is a government-sponsored enterprise founded during the Great Depression (1938). The primary objective of the corporation is to promote the secondary mortgage market of the country. Fannie Mae works with loan companies and banks to design loans for homes, for students, for college and for investors. The corporation also offer loan modification and refinance loans for borrowers facing late payments and defaults.
The corporation has set new loan limits on various loan terms such as jumbo and conforming loans. While obtaining a single family home loan from a mortgage banker, a loan company or a commercial bank, it is essential for your loan term to conform to the loan guidelines set by Fannie Mae. A corporation or a general partnership cannot obtain a loan term from them. Moreover, Fannie Mae lenders work only with individuals and mortgage programs owned by the enterprise. Lower interest rates are also made available with conforming loans which are assured to be purchased by the Freddie Mac or Fannie Mae.
Fannie Mae Loan Limits
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According to Fannie Mae, there are certain maximum loan limits that borrowers can obtain. Those borrowers who are unable to meet the requirements for conforming loans can also apply for non-conforming terms. However, it may have slightly higher interest rates when compared to the conforming term. As per the Housing and Economic Recovery Act 2008, Fannie Mae has introduced two sets of limits on first mortgages - general conforming loan limits and high cost area conforming loan limits. The conforming loan limits are applicable to all the conventional mortgages which are delivered to the enterprise after 1st January 2010. On the other hand, Federal Housing Finance Agency determines the conforming loan limits of high-cost areas in the U.S.
Fannie Mae Loan Guidelines
The government sponsored enterprise has also set new guidelines for loans for condos and several other loan amounts. If a borrower is unable to qualify for a conforming loan then he/she can get a jumbo loan having more amount than the maximum loan amount. Borrowers can follow some simple tips while dealing with Fannie Mae. First of all, they should check if they are eligible for loan terms insured or owned by Fannie Mae or Freddie Mac. Borrowers are advised to contact the enterprise directly through a call or by visiting their official website.
Website: http://www.fanniemae.com/kb/index?page=home
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