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%.
First-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 More
Renovation costs can be added to specific rehab loans offered through the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac for borrowers meeting specified criteria, such as down payment amounts, project scopes, credit scores, and other requirements.Read More
It’s best to have all documentation, financials, commitment letters, and mortgage options prior to making an offer on a property in the current record-breaking spring home-buying season led by low interest rates, pent-up demand, and decreased inventory.Read More
Insured and subsidized by various federal agencies, U.S. government-backed mortgages can help borrowers achieve home ownership through low interest rates and down payments, closing fee allowances, flexible credit scores, and other advantages.Read More