Fannie mae mortgage Meaning and Definition

Pronunciation

Part of Speech

Noun

Definition

A type of mortgage loan secured by Fannie Mae, a government-sponsored enterprise, designed to provide alternative lending options for borrowers with less-than-perfect credit or limited credit history.

Examples

John applied for a Fannie Mae mortgage to purchase his first home.
Fannie Mae mortgages are known for their competitive interest rates and relaxed credit requirements.

Synonyms

Mortgage loan
Second-chance mortgage

Antonyms

Conventional mortgage
Subprime mortgage

Additional Information

Fannie Mae mortgages are designed to help borrowers with limited credit or financial resources achieve homeownership. These mortgages often have more lenient credit score requirements and lower down payment options compared to traditional mortgages. However, borrowers may be required to pay private mortgage insurance (PMI) to compensate for the increased risk.

Fannie Mae mortgage options include fixed-rate, adjustable-rate, and government-backed loans. Borrowers can choose the best option based on their financial situation, credit score, and loan-to-value ratio.

Etymology

Fannie Mae is named after Elsie L. Thompson, a homemaker who lent money to low-income families during the 1930s.

Usage Notes

Fannie Mae mortgages are typically used for primary residences, but may be used for investment properties under specific circumstances.

Cultural References

Fannie Mae mortgages have been featured in various financial news outlets, including Forbes, The New York Times, and CNN.

Idiomatic Expressions or Phrases

“Fannie Mae is the perfect solution for first-time homebuyers.”

Related Words or Phrases

Mortgage loan, home equity loan, credit score

Collocations

Fannie Mae mortgage, credit score, down payment

Frequency of Use

Fannie Mae mortgages are commonly used in the United States, particularly among first-time homebuyers or those with limited credit history.

Common Misspellings

Fannnie Mae, Fanney Mae, Fannie Mae Loans