How to Get a Fannie Mae Mortgage

Seldom is a house bought on cash basis in the US. In order to facilitate the process of home buying for low to middle income groups as well as the minorities, the congress in 1938 established the Federal National Mortgage Association, popularly known as the Fannie Mae.

The association not only provides financial help but also secures the rights of the buyers against unethical but not illegal tactics that are used by lenders which may not be in the best interest of the buyers. You should make use of the program if you are within the given bracket required.

Instructions

  • 1

    Buy a Pre-owned House

    The program does not help in financing houses that are recently made and the person applying for the loan is the first owner. You must be buying a house as at least the second buyer to qualify for the Fannie Mae program.

  • 2

    Verify Employment

    For qualifying for the enrolment into the program, you need to show the last two year’s employment record. In case you are self employed and have a stake of 25% or more in the company, you will have to show the worth of the company as well. This is a very important step and most of the issues for the loan are related to these numbers.

  • 3

    Find an Approved Lender

    Make sure that you find a Fannie Mae approved lender when buying the house. You will have to ascertain this when you are seeking the loan and counting your options. The lender needs to be able to get you this type of loan as all of them cannot. Without this, the lender will be of little use.

  • 4

    Loan Limit

    There is a loan limit that everyone has which is determined. Make sure that you are able to find a house within that limit to have a low interest rate to pay. If you buy a house that costs more, you will not be able to benefit from the low interests rates on offer.

    You can buy a house within the program limits who monthly payment does not exceed 28% of your monthly income. If the debt to income ratio is greater than 28%, you will not qualify for the program.

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