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Fannie Mae and Freddie Mac Can Move You Into Your Dream Home

Freddie Mac and Fannie Mae are two publicly-traded companies that can make a big difference to homebuyers and mortgage holders. Fannie Mae is a nickname for the Federal National Mortgage Association (FNMA). This company buys mortgages in the secondary mortgage market and sells securities on the stock market. Freddie Mac is officially a company called the Federal Home Loan Mortgage Corporation (FHLM). It also buys mortgages and sells securities. Both companies resell mortgages to investors and this allows lenders to have the money needed to lend to homebuyers. Without companies like these, lenders would not have as much money to offer borrowers and would therefore have to enforce tighter conditions for lending.

Once Freddie Mac and Fannie Mae buy a mortgage, they place conditions on it regarding income level, credit rating, loan amount, and down payment. This is called a conforming loan, and not all borrowers may qualify for it. If you do not qualify for such a loan, a bad credit loan may be a better option. A bad credit loan is offered by a private lender and often comes with higher rates but with more flexible conditions. Even if you do not qualify for a conforming loan, you can often find a bad credit mortgage lender who can offer you a bad credit loan.

If you do not qualify for a conforming loan, you should pick your bad credit loan and bad credit mortgage lender carefully. You do not want to overpay just because your credit is imperfect. You can quickly find the right bad credit lender by applying with Lowest Mortgage Rates. Lowest Mortgage Rates are bad credit specialists who have the knowledge to pair you with the bad credit lender who can really make a difference – whether you qualify for Freddie Mac and Frannie Mae loans or not. Lowest Mortgage Rates gives you a few free no-obligation quotes so that you can choose the most affordable financing option possible.

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