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Jean Folger has 15+ years of experience as a financial writer covering real estate, investing, active trading, the economy, and retirement planning. She is the co-founder of PowerZone Trading, a company that has provided programming, consulting, and strategy development services to active traders and investors since 2004.
Updated May 10, 2024Fannie Mae (the Federal National Mortgage Association or FNMA) is a government-sponsored enterprise (GSE) established in 1938 to expand the liquidity of home mortgages by creating a secondary mortgage market. Fannie Mae always ranks in the top 25 U.S. corporations by total revenue.
As a secondary market participant, Fannie Mae does not lend money directly to consumers. Instead, it keeps money flowing to mortgage lenders (e.g., credit unions, local and national banks, thrifts, and other financial institutions) through the purchase and guarantee of mortgages made by these firms.
When foreclosures arise on mortgages in which Fannie Mae is the owner/backer, or when properties are acquired through deeds in lieu of foreclosure or forfeiture, Fannie Mae attempts to sell the properties in a timely manner to minimize potential impacts on the community.
Via its website, HomePath, Fannie Mae offers a venue where homebuyers and investors can search for, view, and make offers on Fannie Mae-owned properties, and HomePath Mortgage offers financing products for the listed properties.
HomePath.com includes only properties that are owned by Fannie Mae, including single-family homes, townhouses, and condominiums. Fannie Mae uses local real estate professionals to prepare, maintain and list the properties for sale. Most listings have photographs, descriptions, and other details, including school and neighborhood information.
Fannie Mae properties are sold in "as is" condition, meaning that unlike purchases from a private seller, Fannie Mae will not make any repairs or adjust the purchase price.
The number, type, and sales prices vary greatly by market, as does the condition of the properties. While some homes are move-in ready, others require repairs or even extensive renovations. However, each property is sold in "as is" condition, meaning that what you see is what you get—unlike a private seller, Fannie Mae won't do any fix-up or adjust the purchase price in lieu of making repairs.
Freddie Mac, Fannie Mae's brother corporation, was founded in 1970. It was created with a similar mission: to provide liquidity and keep it flowing in the mortgage market. Freddie Mac also operates a website that lists an inventory of homes available for purchase, HomeSteps.com. Their inventory is not as extensive as found on Fannie Mae's website, HomePath.com, but it does list different properties.
Properties owned by Fannie Mae Homepath are foreclosed properties that are sold as is, meaning that Fannie Mae does not repair or renovate them.
Fannie Mae buys mortgage loans from lenders to free up your lender's ability to make new loans to homebuyers. Typically, you would continue to make your mortgage payment to the same mortgage servicer.
Fannie Mae offers flexible options to help encourage homeownership, including the ability to finance up to 97% of the home's purchase price. Also, foreclosure prevention and loan modification are available for Fannie Mae loans to those struggling to make their mortgage payments.
Fannie Mae is a government-sponsored enterprise (GSE) that helps expand the liquidity of home mortgages by creating a secondary mortgage market. Although Fannie Mae does not lend money directly to consumers, it purchases and guarantees loans from lenders, freeing up those lenders to make new loans. Fannie Mae also has programs to prevent foreclosure through loan modifications.
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A contingency clause is a contract provision that requires a specific event or action to take place in order for the contract to be considered valid.
A conditional offer is an agreement between a buyer and a seller that an offer will be made if a certain condition is met.
A bidding war is a situation in which potential buyers of a property vie for ownership via a series of increasing price bids.
A down payment is a sum of money, usually a percentage of the cost the buyer pays at the outset of a purchase of a home or car.
A home equity loan is a consumer loan allowing homeowners to borrow against the equity in their home.
Recording fees are levies charged by government agencies to document real estate transactions in order to make them a matter of public record.
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