There are 3 major government agencies that control the mortgage industry and they are Fannie Mae, Freddie Mac and FHA. All 3 agencies give monies to the big banks such as Chase, Citibank, Wells Fargo and etc. Each agency has a set of guidelines that the Big Lenders needs to abide by. Below is just a few reasons why select Fannie Mae for our clients, although we do have a fantastic relationship with FHA for borrowers that fit their guidelines such as low down payment with credit scores as low as 500 and Fannie Mae has its guidelines….take a look.

  • Higher loan limits in most states/counties
  • Lower credit score required (620 for FNMA)
  • No upfront MIP, (Mortgage Insurance Premium, like is required by FHA)
  • More competitive MI ( mortgage insurance) rates are available
  • Monthly MI (mortgage insurance) may be removed at a future date. FHA LTV > 90%, monthly MI is for the life of the loan.
  • Single pay MI is available and may be paid by the seller to remove the payment from the QM calculation
  • Less documentation required
  • Appraisal cost is less
  • Less follow up on property condition
  • No borrower contribution required.  3% down payment may be a gift.
  • No maximum DTI (debt to income).

To learn more contact our office and speak to a loan consultant.

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