Fannie Mae Loan Mortgage Programs
Fannie Mae loan mortgage programs have been helping people achieve the American dream of homeownership for over 70 years. Fannie Mae is a government-sponsored enterprise that was chartered by Congress to support affordable homeownership and provide funds to mortgage lenders.
Fannie Mae loan mortgage programs have become even more important since the housing crisis began in 2008. Fannie Mae has been instrumental in helping distressed homeowners avoid foreclosure and strengthening lending standards to ensure that people who buy houses can afford to maintain mortgage installments.
Fannie Mae has several Mortgage Help Centers positioned across the nation. These centers offer personal contact with staff members and experienced housing counselors to determine what programs would be most beneficial.
Currently, Fannie Mae Mortgage Help Centers are located in Philadelphia, Chicago, St. Louis, Atlanta, Miami, Tampa, Jacksonville, Dallas/Ft. Worth, Phoenix, Los Angeles, and Sacramento. All services provided through these centers are free. Further details are available at KnowYourOptions.com.
Homeowners that are struggling to meet mortgage obligations due to unemployment or underemployment might qualify for financial assistance through Fannie Mae Hardest Hit Fund programs.
Although Hardest Hit Fund programs vary by state, most provide mortgage payment assistance, principal reduction, funds to pay off second lien loans, and relocation assistance funds to homeowners in transition. A good example of how the program works, along with eligibility criterion is demonstrated in our article about Florida Hardest Hit Fund.
At present, Hardest Hit Fund programs are offered in 19 states including: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington DC. Fact sheets for each state are provided at Treasury.gov.
Homeowners that aren't eligible for Hardest Hit Fund should look into Making Home Affordable. This government-sponsored program offers several programs to help homeowners keep their house or transition into more affordable housing without having to endure the foreclosure process.
Home Affordable programs include mortgage refinancing, loan modification, deferred payments, mortgage forbearance, deed in lieu of foreclosure, and real estate short sale. Program details and eligibility requirements are available at MakingHomeAffordable.gov.
Homeowners that don't qualify for MHA programs might be interested in Fannie Mae's Deed-For-Lease program. This option lets homeowners transfer their property title to their mortgage company using a deed in lieu of foreclosure than lease the property back as a tenant.
Deed-For-Lease is available to homeowner's that are ineligible for mortgage refinance or loan modification, but want to stay in their home. Program applicants must be facing long-term hardship; owe more than their home is worth; and be several months delinquent on mortgage payments.
Fannie Mae also provides a special military forbearance for service members and their spouses that have a Fannie Mae loan mortgage. The military forbearance lets homeowners suspend or reduce monthly installments for up to 360 days.
Last, but not least, Fannie Mae initiated Home Path Mortgage to offer affordable housing and financing. Home Path properties are comprised of foreclosure, deed in lieu, and short sale real estate.
HomePath financing is a good option for people who can afford monthly payments, but don't have a lot of money saved for a down payment. Furthermore, buyers are able to obtain down payment assistance from outside sources such as grant money or loans from a non-profit organization.
As you can see, there are several Fannie Mae loan mortgage programs available to help homeowners prevent foreclosure or buy affordable housing. Although it can take some time to review available options, doing so can help individuals save a lot of time, money, and frustration.
We offer additional information about Fannie Mae loan mortgage programs, as well as foreclosure prevention strategies and home buying tips in our home loan mortgage article library.