Fannie Mae (FNMA)
Fannie Mae is the more commonly known name for the Federal National Mortgage Association (FNMA). This is a government sponsored and publicly traded company that was founded in 1938. The purpose of the corporation is to securitize mortgages using mortgage-backed securities.
If a mortgage lender wants to sell a mortgage backed by Fannie Mae, that lender must not participate in subprime lending. These loans are often offered to buyers that are considered high risk, and many of these buyers find themselves in trouble with their mortgage fairly quickly. There are limits to a Fannie Mae loan within the United States.
A single family home cannot be purchased for more than $424,000. In high-cost areas, like Alaska and Hawaii, the maximum amount of a mortgage backed by Fannie Mae is $636,150. The limits for these loans is set by the Federal Housing Finance Agency (FHFA).
If you are interested in obtaining a Fannie Mae-backed loan, it is necessary to go through a lender that has been approved to provide them. You will have to provide the lender with financial information and documented proof of your income. You will also have to provide proof of your monthly debts.
For more information about Fannie Mae loans and the other type of loans on today's market, contact an experienced real estate agent for assistance. Your real estate agent will be able to discuss your finances with you and offer you the options that will best meet your current needs.