A loan that a lender holds onto instead of selling on the secondary market
Lenders pool and sell most loans to the secondary market in order to create money for more loans. But, to keep their in-house assets at a certain level, lenders keep some loans in their "portfolio." Since portfolio loans don’t have to stick to the rules set by secondary market institutions, like the Federal National Mortgage Association (Fannie Mae), they have some appealing qualities, like letting you borrow large amounts.
But, you may have to come up with a sizable down payment, or accept a high interest rate. Lenders who offer portfolio loans usually don’t ask for heaps of documents to prove your income or assets.
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Showing posts with label Fannie Mae. Show all posts
Showing posts with label Fannie Mae. Show all posts
Tuesday, June 27, 2006
Monday, June 12, 2006
Jumbo loan
Any loan that allows you to borrow more than an amount set by the Federal National Mortgage Association (Fannie Mae)
If you want to borrow over $240,000 for a single-family home, or over $307,100 for a two-family home in the continental US, you have to apply for a jumbo loan. In Hawaii and Alaska, you need a jumbo loan if you plan to borrow over $360,000 for a single-family home or over $460,650 for a two-family home.
Most commercial lenders agree to use these guidelines, which are set by the Federal National Mortgage Association. Jumbo loans have higher interest rates and fewer financing options, and are also called non-conforming loans.
If you want to borrow over $240,000 for a single-family home, or over $307,100 for a two-family home in the continental US, you have to apply for a jumbo loan. In Hawaii and Alaska, you need a jumbo loan if you plan to borrow over $360,000 for a single-family home or over $460,650 for a two-family home.
Most commercial lenders agree to use these guidelines, which are set by the Federal National Mortgage Association. Jumbo loans have higher interest rates and fewer financing options, and are also called non-conforming loans.
Tuesday, April 18, 2006
Federal National Mortgage Association (Fannie Mae)
A government-sponsored corporation that buys and sells loans in the secondary market
Fannie Mae buys loans from lenders and sells them to investors, the government and other lenders. This allows lenders to have a steady flow of money so that they can offer more loans to customers who want to buy homes.
Fannie Mae only buys loans that conform to their strict borrowing guidelines. Fannie Mae also offers a special first time buyer program, which only requires a 3% down payment, to encourage people who don’t make a lot of money to buy homes.
Fannie Mae buys loans from lenders and sells them to investors, the government and other lenders. This allows lenders to have a steady flow of money so that they can offer more loans to customers who want to buy homes.
Fannie Mae only buys loans that conform to their strict borrowing guidelines. Fannie Mae also offers a special first time buyer program, which only requires a 3% down payment, to encourage people who don’t make a lot of money to buy homes.
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