help for non fannie mae or freddie mac loans

The reason Freddie Mac was created was to create competition with Fannie Mae. Especially during periods of depression and tougher economic times.įannie Mae became a public enterprise back in 1968 and was publicly traded. The purpose was to insure that mortgage funding was sufficient and available at all times.

Fannie Mae was formed and created under the watch of Franklin D. Difference Between Fannie Mae And Freddie Macīoth the role of Fannie Mae and Freddie Macs purpose is to purchase and guarantee mortgage loans. Leverage and debt service requirements depend upon the market in which a property is located for Top Markets 80% maximum LTV and 1.20x minimum DSCR is permitted, while for Very Small Markets 70% maximum LTV and 1.35x minimum DSCR is allowed. These loans are issued in amounts up to $10 million, with term options including 5, 7, 10 or 15-year fixed-rate loans or 5, 7 or 10-year floating-rate loans. Eligible property types include stabilized properties with long-term HAP contracts, Section 8 vouchers, agreements that impose rent or income restrictions, tax abatements and LIHTC properties in year 11 or later of their compliance period. The Freddie Mac Targeted Affordable Housing Express loan can often be an ideal loan product for investors looking to purchase or refinance affordable housing properties. Househunters with modest or variable income: The lower interest rates on most FHA loans can provide breathing room for buyers with tighter budgets or variable income, including freelancers or those who are self-employed.įreddie Mac Targeted Affordable Housing Express.Buyers with less competitive down payment capabilities may find FHA terms more favorable. Househunters with smaller savings: FHA loans statistically court lower down payments.Young or first-time homebuyers: Over 80 percent of all FHA loans lent in the past two years have been to first-time homeowners.Since FHA mortgages are easier to qualify for, theyre particularly attractive for individuals in the following circumstances: Simple Explanation of Fannie Mae, Freddie Mac and FHA!

Help for non fannie mae or freddie mac loans