Fannie Mae Mortgages

A “conforming loan” is one that follows the guidelines established by the Fannie Mae or Freddie Mac programs. A lender’s considerations when approving conforming loans include the maximum loan amount, down payment required, borrower credit expectations, income ranges and property type. The majority of mortgage loans issued in the U.S. are conforming loans.

Fannie Mae is a private, shareholder-owned company that ensures mortgage funds are available in all cities across the country. They do not lend money directly to home buyers or home owners, but work with lenders to ensure the availability of mortgage funds.

Lenders that make mortgage loans adhering to Fannie Mae’s requirements may sell those loans to Fannie Mae but will often continue servicing the mortgage so that the mortgage borrower is unaware of the sale and continues making payments to the original lender.

Fannie Mae mortgage limits as of January 1, 2004 are:

First Mortgages

One-family mortgage: $333,700
Two-family mortgage: $427,150
Three-family mortgage: $516,300
Four-family mortgage: $641,650

* One to four family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.

Second mortgages

$166,850

* In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $250,275

In order for mortgages to qualify for the Fannie Mae program, in addition to the mortgage amount falling within established limits, the following information will also be considered by the lender when reviewing your mortgage application and must meet Fannie Mae’s requirements:

verification of employment and income,
information about debts and assets,
account numbers and balances for savings, checking, and other financial accounts,
a title search,
a copy of the site survey,
an appraisal (in some cases an exterior-appraisal only),
information about your present mortgage will also be required, such as current monthly payment, outstanding mortgage balance, status of property tax and insurance payments, and the lender's contact information (if you're not refinancing through your original lender).

LendingLeaders will match you lenders who specialize in providing conforming loans. The lenders will work with you to help decide what mortgage options are right for your situation. To have one of our lenders contact you to help decide what type of conforming loan mortgage is right for you, simply fill out the quick, no obligation loan form by clicking here.