subject: Affordable Homes for Low-Income Families Through Fannie Mae Foreclosures [print this page] Fannie Mae foreclosures are home loans offered by the Federal National Mortgage Association, a government-backed business entity operating in the secondary housing market. The company buys up closed loans with the desired result of enabling lenders to keep providing home financing or Fannie Mae mortgages to the public. These foreclosures target individuals and families with lesser means to become home owners. Fannie Mae foreclosures are usually released through various channels including online listings services, and local real estate companies.
Qualifying for Fannie Mae Foreclosures
The procedures to be followed to qualify for Fannie Mae foreclosures are the same as the procedures covering all other foreclosures. The difference lies in the mortgage rates, the terms of payment, the incentives and tax breaks afforded to borrowers. In line with the company's efforts to provide affordable housing to the ones who most need it, Fannie Mae foreclosures can only be acquired if the buyer intends to live in the home.
People applying for Fannie Mae foreclosures should be able to provide documents indicating that they have a steady flow of income and have had it for the past two years. They should also have a good credit reputation, which can be manifested by being pre-qualified by a bank to secure a loan. Fannie Mae loans are structured in such a way that the borrower's debt-income ratio does not exceed 28 percent. This means that your monthly payments will not exceed 28 percent of your monthly pay. Fannie Mae also allows borrowers to apply funding assistance acquired from other government home assistance programs to the down payment and the closing costs.
Owners of Fannie Mae foreclosures who may find themselves in dire financial straits in the future will be given access to loan modification programs and other means of ensuring that they are able to keep their homes and pay their loans off eventually. Low-income families should not pass up the chance to live in their own home through a program like Fannie Mae.
Affordable Homes for Low-Income Families Through Fannie Mae Foreclosures
