Mortgage lenders sometimes package a group of mortgage loans and sell them to Fannie Mae, and this means that Fannie Mae has an interest in homeowners making their payments beyond mere concern for the well-being of the housing market.
While it is possible to go beyond these limits and to enter into the realm of jumbo loans, if you want to remain within the monetary boundaries of conventional loans you will not be able to exceed the Fannie Mae limit.
Even if your mortgage loan has been packaged and sold to Fannie Mae - but the servicing remains with the lender - you should contact your lender if there is even a small chance that your payment may not be met.
It is important to note that in some instances, you will not be able to obtain a mortgage loan for up to five years as a result of Fannie Mae lending standards pertaining to foreclosures.
In early 2009, President Barack Obama signed an initiative aimed to help five million borrowers refinance their homes if the mortgage is owned or guaranteed by Freddie Mac or Fannie Mae.
Mortgage lenders are not mandated to follow these requirements, but most lenders do choose to follow the requirements to allow the mortgage to be purchased by Fannie Mae or Freddie Mac.
Students attempting to apply for a loan through a private organization, including Fannie Mae or Freddie Mac, will need to provide the appropriate credit history and scores to qualify.
Although the definition of jumbo loan limits may seem clear, the term jumbo loan does not always signify loans that do not conform to Fannie Mae and Freddie Mac's loan limits.
Properties are usually brokered through a local real estate agency, and the usual closing procedures will apply when purchasing a foreclosed home offered by Fannie Mae.
Jumbo loan limits exceed maximum loan limits set by Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation).