B2-1.3-01: Fixed-Rate Mortgages (08/20/2013)
- Marsha Freeman
- Kacey Olson
© Fannie Mae Single Family Selling Guide
Fixed-Rate Mortgage Eligibility
The eligibility requirements described in this topic apply to first mortgages. Eligibility criteria for second mortgages are determined when the lender requests a Master Agreement to cover second mortgage deliveries (see B2-1.4-01, Mortgage Loan Limits).
Fannie Mae purchases or securitizes conventional, fully amortizing, fixed-rate first mortgages. The mortgage can be subject to a temporary interest rate buydown plan, provided that the subject property is secured by a principal residence or a second home property. (See B2-1.3-05, Temporary Interest Rate Buydowns.)
The payments must be structured as follows:
level monthly installments of principal and interest (P&I),
due on the first day of each month, and
payment of interest in arrears.
For credit score requirements in association with products and LTV/CLTV/HCLTV limitations, see the Eligibility Matrix.