Enacted by Congress at different times in history to help citizens achieve the dream of homeownership, Fannie Mae and Freddie Mac provide liquidity, stability, and affordability to the greater mortgage market.
Both Fannie Mae and Freddie Mac are mortgage-backing entities that aim to boost the housing market—but each does so in a unique way. Let’s delve into how each of these lend an assist to your journey toward homeownership.
Fannie Mae boasts many programs for both first-time and repeat homebuyers. Some of these products are intended to help you buy a home or refinance with a lower rate or even assist you in purchasing real estate owned (REO) property. Click here for a full listing of Fannie Mae mortgage products.
Freddie Mac offers an array of products and services, all aimed at assisting borrowers in different ways. These innovative mortgage offerings address an array of situations, like financial assistance, renovations, cash-out refinances, and more. Click here for a full listing of Freddie Mac products.
A median FICO credit score of at least 620, from the three major credit bureaus
Your DTI, which compares monthly debt to before-tax monthly income, should be no higher than 50%.
A necessary down payment could be anywhere from 3% to 5%.
Homeowners move each year for various reasons including employment, financial challenges, more or less space, and other factors.
Read MoreWhen considering a rehab mortgage for a new home purchase or renovation project, it’s important to examine various types and specific requirements, benefits, and drawbacks of each.
Read MoreFirst-time home buyers may qualify for various conventional and government-backed loans, such as those offered through Fannie Mae, Freddie Mac, the Federal Housing Administration, U.S. Department of Agriculture, and Veterans Affairs.
Read MoreGovernment-backed loans offered through the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), and Veterans Affairs (VA) can assist qualified borrowers with home purchases, and improvement and rehab projects.
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