Recognizing
that saving enough money for a down payment can be a major
stumbling block to buying a home, Fannie Mae has developed
a wide array of no and low down payment mortgages. These
Fannie Mae products are ideal if you have limited funds for
closing costs as well. The Flexible 97® and Flexible
100SM loans are designed for home buyers with very good credit
histories; other low down payment loans offer more flexible
qualifying requirements and may be particularly helpful if
you have a limited income. Fannie Mae-approve lenders offer
a wide array of low down payment mortgages.
Fixed-Rate Mortgages
Fixed-rate mortgages, the most popular type of mortgage,
offer the peace of mind that your interest rate will remain
the same for as long as you have your loan. Typically, the
longer the term of the mortgage, the more interest you pay
over the life of your loan. However, stretching out your
repayment term means your monthly mortgage payments will
be less than they would be with a comparable shorter-term
mortgage. Fannie Mae-approved lenders offer a wide array
of fixed-rate mortgages.
Adjustable-Rate Mortgages (ARMs)
Fannie Mae began offering the adjustable-rate mortgage (ARM)
in the early 1980s, when long-term interest rates were high
and people needed a new type of financing to buy homes. These
products start out with a lower interest rate, then the interest
rate adjusts periodically. Fannie Mae-approved lenders offer
a wide array of adjustable-rate mortgages.
Reverse Mortgages
Unlike a traditional mortgage that
you pay back each month, reverse mortgages provide payments
to you. They, in effect, "reverse" the
direction of the mortgage payments. Reverse mortgages provide
an excellent opportunity for older Americans to enjoy extra
security and financial support. To provide additional housing
options for older homeowners, HUD insures reverse mortgages
under the Home Equity Conversion Mortgage (HECM) program.
Fannie Mae supports the HECM program and the options it offers
older homeowners. Lenders offer a wide array of reverse mortgages.
Special Financing Mortgages
Fannie Mae works to address the housing
needs of those who have not traditionally been well-served
by standard mortgage
products, including Native Americans, those living in rural
areas, and people with disabilities. Fannie Mae also helps
address the needs of borrowers with minor problems in their
credit history with "Expanded Approval." If you
are a borrower in one of these categories, consider one of
these Fannie Mae products, available from Fannie Mae-approved
lenders who specialize in these areas.
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal finance
book, Let's Get Financial Savvy! ISBN #0971979502.
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