Tuesday, June 3, 2008

What is Fannie Mae

Fannie Mae stands for the Federal National Mortgage Association. It is referred to as Fannie Mae, Fannie, FNMA or Fanny. Fannie Mae provides the secondary market for home mortgages. Fannie Mae has a specific criteria for mortgages that it sells. The loans are then put into mortgage pools and then are sold to Wall Street and other investment entities. Fannie Mae only deals in conforming loans. Currently a loan is conforming if it below a certain amount. For example in Maricopa County Arizona, the conforming loan limit is $417,000. Anything about this amount would be considered a Jumbo Loan and would have a different set of lending criteria.

GetPrequalified.com

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