What Are the Requirements of a Fannie Mae or Freddie Mac Loan?

Fannie Mae and Freddie Mac loans combine features of government-backed loans with those of conventional loans obtained from commercial lenders.

These loans impose several requirements on potential borrowers:

• To obtain a Fannie Mae or Freddie Mac loan, you must apply through a commercial lender approved by Fannie Mae or Freddie Mac.

• The loan must be a conforming loan, not a jumbo loan. Conforming loans also limit the debt-to-income ratio (DTI) you can have. These loans have minimum credit score requirements, typically mandating a minimum credit score of 620.

• Approved lenders also may impose additional requirements, so interested borrowers should check first with lenders about the availability and requirements to qualify for a Fannie Mae or Freddie Mac loan.

Tellus TIP:

Fannie Mae and Freddie Mac loans are popular among homebuyers. If you think you may qualify, you should apply through an approved lender!