Main Loan Types
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Fannie Mae is the most common name of the Federal National Association. Fannie Mae is a congressionally chartered, shareholder - owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market. Before approving you, Fannie Mae looks at a number of factors including credit rating, debt ratio, home equity and employment history. Loans that are approved via Fannie Mae should qualify for a better rate than "investor" loans. Visit http://www.fanniemae.com for more details.
Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation. The 2003 maximum loan amount for the both Fannie Mae and Freddie Mac is $417,000. Freddie Mac does not issue mortgages directly, rather, they buy mortgages from lenders and sell them as securities on the secondary mortgage market. Factors involved to approved are credit ratings, debt ratio, home equity and employment history. Like Fannie Mae, loans that are approved via Freddie Mac should qualify for a better rate. You may also like to visit http://www.freddiemac.com for further details.