*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
When going throughout the loan process, there's a good chance that you'll hear the terms "Fannie Mae" or "Freddie Mac". Let's be honest, unless you're working in the housing industry, or are super involved with mortgages and how they work, there's a good chance you haven't heard of them before buying your first home.
Fannie Mae and Freddie Mac are considered GSE's or "government sponsored enterprises". According to investopedia , "A government-sponsored enterprise (GSE) is a quasi-governmental entity established to enhance the flow of credit to specific sectors of the American economy. Created by acts of Congress, these agencies–although they are privately-held–provide public financial services. GSEs help to facilitate borrowing for a variety of individuals, including students, farmers, and homeowners."
Both Fannie Mae and Freddie Mac's biggest goal is to help borrower's to get into their future homes, According to Rocket Mortgage, "Congress created Fannie Mae first to provide accessible funding and more affordable housing. Freddie Mac, alternatively, started as a public enterprise to further expand the secondary mortgage market."
Fannie Mae and Freddie Mac have guidelines for conventional mortgages, such as needing at least 3% of the purchase price to put as a down payment on a home. Any down payment below 20% would need mortgage insurance to mitigate risk for the lender. They also have lending guidelines on other qualifying factors that include income and cash reserves, and they also have guidelines that go over loan limits.
Fannie Mae and Freddie Mac are crucial players when it comes to completing a conventional mortgage loan. Call me for more information today.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
Commenti