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Fannie Mae Loan Mortgage Programs

Fannie Mae loan mortgage programs are available to help people buy affordable houses; alter mortgage terms through refinancing, loan modification, and other options; and avoid foreclosure through alternatives such as short sales or deed in lieu.

Several new Fannie Mae loan mortgage programs have been instituted since the mortgage crisis led to millions of foreclosure. These include: Hardest Hit Fund, Deed-For-Lease, and Fannie Mae Mortgage Help Centers where homeowners can obtain housing counseling to review and apply for mortgage programs.

Hardest Hit Fund is offered in 19 states and aimed at helping homeowners who are experiencing financial hardship due to unemployment or underemployment. Eligibility criteria varies by state, so homeowners will need to spend time learning about what is available in their state.

A lot of people are unaware of Hardest Hit programs, so funding is still available in many states. For example, Florida Hardest Hit Fund received $418 million in funding, but have only provided a little over $1 million in assistance funds.

According to collected data, nearly half of applicants are denied Hardest Hit Funds. Those in need of mortgage help may find it advantageous to obtain HUD housing counseling or schedule a meeting with Fannie Mae housing counselors through their Mortgage Help Centers.

Presently, there are only a handful of Fannie Mae mortgage help centers where homeowners can meet face-to-face with counselors. However, homeowners can still obtain mortgage assistance via phone by contacting the office nearest their home.

A complete list of mortgage help centers is published at KnowYourOptions.com. This website is presented by Fannie Mae and includes valuable information and resources to help homeowners make informed decisions and obtain the help and guidance they need to avoid foreclosure.

Another foreclosure prevention program that can help homeowners with Fannie Mae-owned loans is Making Home Affordable. This program is sponsored by the U.S. government and offers numerous options to reduce mortgage payments, along with foreclosure alternatives.

Making Home Affordable offers programs that allow homeowners to reduce monthly mortgage payments, lower interest rates, reduce principal balance, modify terms of second lien mortgages, suspend or reduce payments for homeowners that are unemployed, or enter into foreclosure alternatives of deed in lieu of foreclosure, or real estate short sales.

Service members and their spouses whose mortgage loan is owned by Fannie Mae might qualify for a special military forbearance. Real estate forbearance reduces or suspends payments for up to 180 days to help borrowers get back on their feet. Service members that qualify for Fannie Mae special military forbearance can receive up to an additional 180 days to recover from financial hardship.

One of the more popular Fannie Mae loan mortgage programs is Deed-For-Lease. Homeowners have to transfer the title to their house over to the bank using deed in lieu of foreclosure. Under normal circumstances, deed in lieu releases homeowners from their mortgage obligation once they return the property to the bank.

The Deed-For-Lease program lets homeowners stay in their house as a tenant. Instead of paying monthly loan payments they remit rent to the bank. Since rental amounts are based on current market conditions, homeowners often end up paying much less to live in their house.

Although home sales continue to decline, anyone who is ready to buy a house should consider Fannie Mae Homepath. This program was developed to liquidate the overabundance of bank owned foreclosure homes.

Most of Fannie Mae Homepath properties are sold below market value and make great homes for first time home buyers and real estate investors. There are several advantages to buying Fannie Mae properties including reduced prices and good financing options.

Buyers can apply for Homepath Mortgage financing to obtain low-interest loans and minimal down payment requirements. Prior to submitting offers on Fannie Mae homes, buyers should spend time researching HUD's Neighborhood Stabilization Program.

NSP provides grant money to individuals and investors that buy houses in communities with high rates of foreclosure. Combining NSP grants with Homepath financing can shave thousands of dollars off the overall cost of the home.

We invite you to learn more about Fannie Mae loan mortgage programs in our home buying article library. Here you'll find dozens of articles about foreclosure prevention, mortgage refinance, loan modification, mortgage forbearance, deed in lieu, and short sales.


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Published on October 05, 2011 at 03:15 AM | Comments: 1

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Comments

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Cheap | February 14, 2012 9:40 PM

 

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