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B2-1.3-01: Fixed-Rate Mortgages (08/20/2013)

B2-1.3-01: Fixed-Rate Mortgages (08/20/2013)

Owned by Marsha Freeman
Last updated: Nov 16, 2018 by Kacey Olson (Unlicensed)

© 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.