Fannie Mae Loans
Fannie Mae is short for the Federal National Mortgage Association (FNMA), a government sponsored enterprise (GSE) that was founded in 1938 by Congress. Fannie Mae was started during the Great Depression with the sole purpose to stimulate the housing market by creating liquidity for lenders. FNMA doesn’t lend directly to consumers, however it creates liquidity for lenders by buying closed loans from lenders who underwrite the loans to Fannie Mae’s guidelines. This frees up capital for lenders so they can go out and make more loans which provides the housing market with liquidity.
California Mortgage Advisors, Inc. is a Direct Seller Servicer to Fannie Mae. CMA provides borrowers access to a variety of Fannie Mae and government backed home mortgage loans. We offer a wide range of mortgage rates, terms, programs, and options. If you have questions about Fannie Mae loans, call us today at (800) 927-6560 to speak with one of our Mortgage Advisors or you can contact us here online.
What Is A Fannie Mae Loan?
A Fannie Mae loan is also considered to be a conforming loan. This means there are some fairly strict standards and guidelines that must be met in order for a home mortgage to be considered a Fannie Mae loan. The most important of these are the loan limits, typically up to $417,000 in most areas of the country, although some specially designated high-cost metropolitan areas can offer Fannie Mae loans up to $625,500.
Making The Market In Home Mortgages:
Fannie Mae is also charged with the primary purpose of expanding the secondary mortgage market. They do this in a number of ways, but mainly through securitizing mortgages in the form of mortgage backed securities (MBS). After the loan is securitized, Fannie Mae guarantees the mortgage payments to the investors. The purpose of this sophisticated system is to create liquidity for lenders so they can write more loans, therefore helping the housing market. The company is also compelled by law to ignore what might be seen as adverse or unprofitable economic and market conditions. They are here to help mortgage originators and lenders make loans, which is good news for you as a home buyer.
The Benefits of Fannie Mae:
Fannie Mae is the major source of home financing in the Unites States. Regardless of market conditions, Fannie Mae will be there to provide lenders a funding source for the real estate market. This was very evident in the 2007 Real Estate Market Crash as many lenders closed down or backed away from lending all together. Fannie Mae was there to support lenders with funding for home mortgages and help stabilize the market from further demise.
Fannie Mae Programs:
Fannie Mae buys many types of loans which are underwritten to their guidelines. They offer fixed rate mortgages from 10 to 30 years and adjustable rate mortgages with fixed rate periods of 3 to 10 years. For First Time Home Buyers with only 3% to put down on a new home, Fannie Mae has a 97% financing available on 30 year fixed programs for qualified borrowers. If you currently own a home and your loan is serviced by Fannie Mae, you may qualify for programs like the Home Affordable Refinance Program (HARP) or others which are offered exclusively to Fannie Mae borrowers.
Ready For Your Fannie Mae Loan?
If you are looking to purchase a home or refinance your existing home, finding a strong conforming loan with great rates and terms is exactly what you need. CMA is here to assist you. Give us a call today at (800) 927-6560 and speak with one of our professional Mortgage Advisors or you can apply here online.