Government National Mortgage Association (Ginnie Mae)
Commonly known as Ginnie Mae, the Government National Mortgage Association (GNMA) is a United States government corporation under the umbrella of the U.S. Department of Housing and Urban Development. The corporation aims to ensure liquidity for those mortgages that are government insured and provide more monies for lenders to give.
Ginnie Mae does not purchase mortgage loans. It guarantees that principals will be paid on time, as will interest that is provided by approved issuers. These issuers may include commercial banks, savings and loans, and mortgage bankers. Ginnie Mae, unlike Fannie Mae and Sallie Mae, is not publicly traded.
When you purchase a home, whether it is your first or your tenth, you have options when it comes to lending. At times, these options can be overwhelming, especially for a person who is not well-versed in the financial sector. This is why it is important to at least speak with a qualified lender who can guide you in the right direction when it comes to choosing the mortgage loan that is right for your family.
An experienced real estate agent can also be of assistance in securing the right loan. If you are in the market for a new home, your real estate agent can help you secure financing. Be open and honest with your agent about your income and debts. This allows your agent to help you choose the mortgage product that will meet not only your current needs, but your future financial needs as well.