
Fannie Mae 2 Family MCM W O Buy Down Rev 12 07 DOC Form
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People also ask
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Do both borrowers have to be first time home buyers in Fannie Mae?
Our HomeReady mortgage does not require that borrowers be first-time home buyers. Fannie Mae standard transactions using 97% LTV financing, however, must have at least one borrower who is a first-time home buyer.
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What are the requirements for a buydown agreement?
The buydown agreement must provide that the borrower is not relieved of the obligation to make the mortgage payments required by the terms of the mortgage note if, for any reason, the buydown funds are not available.
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What does it mean when Fannie Mae buys your loan?
Fannie Mae buys loans from lenders, replenishing the lenders' funds so they can provide new mortgages for more homebuyers. Your mortgage servicer — the company that you send your monthly payments to — and your loan terms remain the same when we purchase your loan.
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What does it mean if a home is owned by Fannie Mae?
A Fannie Mae HomePath property is real estate obtained by foreclosure or a deed in lieu of foreclosure. Buyers can purchase a HomePath property with a 3% down payment and receive a closing cost credit up to 3% of the purchase price if they use the HomeReady loan program.
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Is Fannie Mae the owner of my mortgage?
Many loans are owned by Freddie Mac or Fannie Mae. Use the Fannie Mae and Freddie Mac lookup tools to find out if your loan is owned by either entity. You can look up your mortgage servicer by searching the Mortgage Electronic Registration Systems (MERS) website. Call your mortgage servicer.
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What does it mean when Fannie Mae buys your mortgage?
Fannie Mae buys loans from lenders, replenishing the lenders' funds so they can provide new mortgages for more homebuyers. Your mortgage servicer — the company that you send your monthly payments to — and your loan terms remain the same when we purchase your loan.
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What happens to unused buydown funds?
The total amount allocated for the buydown is held in an escrow account, which is used each month to apply your savings. Therefore, if you pay off or refinance your loan during the buydown term, any unused funds will be returned to you.
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Why does Fannie Mae buy mortgages?
By packaging mortgages into MBS and guaranteeing the timely payment of principal and interest on the underlying mortgages, Fannie Mae and Freddie Mac attract to the secondary mortgage market investors who might not otherwise invest in mortgages, thereby expanding the pool of funds available for housing.
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