Definition
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise that purchases and securitizes mortgages from lenders, providing liquidity to the housing market. Fannie Mae sets guidelines for conforming loans including credit score requirements, DTI limits, and documentation standards. It does not directly lend to consumers.
Related Mortgage Terms
- Conforming Loan
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, includin...
- Freddie Mac
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsor...
- Secondary Market
The market where existing mortgages are bought and sold between lenders, investo...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.