FHA and Conventional:

30-Year Fixed-Rate Mortgage

Fixed-rate mortgages are Fannie Mae’s flagship products, since many consumers prefer the stability of both a fixed interest rate and a fixed payment over the life of the loan. Most Fannie Mae products carry a 30-year term option.

Lender Benefits

·         Offer borrowers fixed-rate stability along with a way to build equity faster

·         Obtain a consistent secondary marketing outlet

Consumer Benefits

·         Lock in a long-term interest rate with a stable, predictable monthly payment

·         Borrowers who want to build equity faster should select the shortest loan term they can afford

 

5/1 Adjustable-Rate Mortgage

Fannie Mae offers a full range of fixed-period adjustable-rate mortgage products to fit your borrowers’ needs. Fixed-period adjustable-rate mortgages have an initial fixed-rate period, after which the rate may adjust either upwards or downwards annually, based on the cap structure and the index chosen.

Lender Benefits

·         Offer a competitive alternative to balloons or other fixed-rate mortgage options

·         Qualify borrowers with lower rates

·         Qualify borrowers for larger loan balances

·         Originate mortgage assets that more closely track your cost of funds; minimize basis risk

Consumer Benefits

·         Interest-savings in the short-run compared to comparable fixed-rate loans

·         Terms and features to suit almost any borrowers’ needs

·         Qualify for higher loan amounts with lower interest rates than comparable fixed-rate loans

 

Jumbo-Conforming Mortgages

As authorized by the Economic Stimulus Act of 2008 and to help lenders serve more borrowers in many high-cost areas, Fannie Mae now offers Jumbo-Conforming Mortgages. Further, as a part of our Keys to Recovery™ initiative, we are expanding our eligibility requirements, providing new product offerings, and pricing jumbo-conforming whole loans and MBS that we acquire for our portfolio flat to conforming pricing until December 31, 2008. Jumbo-Conforming Mortgages are available to all Fannie Mae approved lenders for whole loan and MBS deliveries for:

·         15- and 30-year fixed-rate mortgages

·         5/1 LIBOR adjustable-rate mortgage options, including an interest-only option

·         7/1 and 10/1 LIBOR adjustable-rate mortgage options, including an interest-only option (available July 1, 2008 for MBS, August 1, 2008 for whole loans)

·         Interest-only option on 30-year fixed-rate mortgages (available August 1, 2008)

·         Purchase, limited cash-out, and cash-out refinances (cash-out available July 1, 2008)

Lender Benefits

·         Flexible product set to serve more borrowers in high-cost areas

·         Broad availability as a standard Fannie Mae Selling Guide product; no special approval required

·         Both MBS and whole loan executions available; Fannie Majors®-eligible

Consumer Benefits

·         Wide range of jumbo-conforming options

·         Competitive rates in many higher-cost areas

·         Low down payment requirements (up to 90% LTV/CLTV)

 

Streamlined Refinance

Streamlined Refinance is a Fannie Mae mortgage product that streamlines the process of refinancing loans that are already in your servicing portfolio. Several options are available to help you meet the needs of your existing customers.

·         Option A – Fannie Mae to Fannie Mae: mortgage loans currently serviced on behalf of Fannie Mae and underwritten to Fannie Mae standards;

·         NEW: Option A Select – Fannie Mae to Fannie Mae: mortgage loans currently serviced on behalf of Fannie Mae and underwritten to Fannie Mae standards with no seasoning required; and

·         Option B – Government Sponsored Enterprise (GSE) to Fannie Mae: mortgage loans not currently serviced on behalf of Fannie Mae, but underwritten to Fannie Mae or Freddie Mac standards.

Lender Benefits

·         Helps you meet the needs of your existing customers

·         Help lenders stay competitive in today’s market

·         Offers competitive pricing from Fannie Mae

·         Streamlined process does not require asset verification, and allows stated income.

Consumer Benefits

·         Helps you serve borrowers with adjustable-rate and interest-only loans facing rate adjustments or transitions from an interest-only to a fully amortizing payment.

 

Flexible 97 & 100 Now you can offer borrowers more options for low down payment mortgages and more flexibility in their sources of funds for down payment and closing costs. With a Flexible 100™ mortgage, the borrower doesn’t need to make a down payment and can provide as little as $500 of their own money toward closing costs. With a Flexible 97® mortgage, the borrower can pay just 3% of the purchase price toward a down payment, and this amount can come from sources such as gifts, grants, loans from relatives or nonprofit groups; or employer-assisted housing. Lender Benefits ·         Loans with LTVs up to 100%, with no income caps or geographic limitations ·         Availability of standard fixed-rate and 5/1, 7/1, and 10/1 ARMs, which can help you qualify more borrowers Consumer Benefits ·         Perfect for borrowers who have limited funds for down payment and closing costs

 

HomeStyle Construction to Permanent

The HomeStyle Construction to Permanent mortgage combines financing for the purchase of land, the construction of a new home, and a permanent mortgage into one loan with one closing.

Lender Benefits

·         Combine construction and permanent financing without interest rate risk or hedging costs

·         Improve liquidity with prompt reimbursement of draws during the construction phase

·         Increase efficiency and reduce costs by eliminating the documentation and expenses associated with a second loan closing

Consumer Benefits

·         Borrow up to 95% of the land acquisition plus the construction cost of the home

·         Lock in the interest rate for the full term of the mortgage before construction begins

·         Save money by paying only one set of closing costs

·         Eligible borrowers can finance soft costs and interest reserves

 

Interest-Only (IO) Feature

The interest-only feature allows borrowers to make lower payments on a fixed-rate mortgage by offering an interest-only period during the early years of the loan, followed by a fully amortizing period. Mortgages with the interest-only feature are intended for financially informed borrowers who are prepared for the increased mortgage payment when the loan converts to a fully amortizing payment. To help ensure that the borrower is prepared for this increase in payment, the borrower must be qualified based on principal, interest, taxes, and insurance (PITI).

Lender Benefits

·         Offer lower payment mortgage option

·         Get additional servicing income from delayed scheduled amortization and larger loan balances over a longer period of time

Consumer Benefits

·         A low monthly payment during the interest-only period means more money to invest elsewhere

·         Achieve more cash management flexibility

·         Reduce future monthly payments without penalty when principal payments are made during the interest-only period