This BLOG On Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans Was PUBLISHED On April 29th, 2019
Recently Fannie Mae added clarity to Fannie Mae NON-Citizens Mortgage Guidelines.
- Per Fannie Mae Guidelines on Conventional Loans, borrowers do not have to be U.S.Citizens to qualify for home loans
- Fannie Mae Guidelines, non-citizen home buyers can qualify for a home mortgage without being a U.S. Citizen
- Fannie Mae Mortgage Guidelines is not a new rule but many mortgage underwriters had issues interpreting the guidelines
- What this translates to is that many non-citizen borrowers were often turned down on conventional loans they qualified
- This was for due to the clarity on Freddie Mac and Fannie Mae Mortgage Guidelines on non-citizens mortgage borrowers
In this blog, we will discuss Fannie Mae Mortgage Guidelines and how non-citizens can qualify for conventional loans.
Fannie Mae And Freddie Mac Mortgage Guidelines
There are two types of traditional home mortgages:
- Government Loans (FHA, VA, USDA)
- Conventional Loans
Government Versus Conventional Loans
Government Loans are insured and partially guaranteed by a government agency. FHA, VA, USDA Loans are the three government loans in today’s market.
- FHA, VA, USDA does not originate, process, underwrite, nor funds government loans
- Private lenders are the institutions that originate and fund government loans
- However, if the lender followed agency guidelines on government loans, the government agency will partially insure lenders in the event borrowers default and the loan forecloses
- Conventional Loans are not backed by any government agency
- Conventional loans are often called conforming loans
- This is because conforming loans need to conform to Fannie Mae and/or Freddie Mac Guidelines
- Conventional lenders want to re-sell the conventional loans they originate and fund to relieve their warehouse lines of credit
- This is the main reason why lenders need conventional loans to conform to Fannie Mae and Freddie Mac Guidelines
If the conventional loans do not conform to Fannie/Freddie Guidelines, then Fannie/Freddie will not purchase the loans.
