Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans

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.

Freddie Mac And Fannie Mae NON-Citizens Guidelines