Low-Cost Home Loan Fannie Mae Crossword Answers and Solutions


If you need help solving the Daily Themed Crossword puzzle and need answers or solutions for the Low-cost home loan Fannie Mae crossword clue, look no further. Below, you will find them all!

Fannie Mae and Freddie Mac made history when they announced reforms designed to counter systemic racism that has prevented people of color from homeownership. The measures taken include creating a credit reporting system that takes rent payments into account, as well as down payment assistance programs.


Homeownership is an essential aspect of the American Dream and an effective means of building generational wealth. But buying your first home can be daunting, especially for first-time buyers. Many obstacles stand in their way when applying for mortgage financing, and the process may seem complex and disorienting. The good news is there are resources to assist borrowers in overcoming these hurdles; one such resource is FNMA, which offers low-cost home loans for all borrowers. FNMA stands for Federal National Mortgage Association and is one of two government-sponsored enterprises (GSEs) that provide lenders with cash to fund new mortgages at affordable rates. Lenders then use proceeds from selling the mortgages back into housing market investments to ensure stable mortgage rates, and everyone can access homeownership.

FNMA was established during the Great Depression as part of President Franklin Roosevelt’s New Deal, initially under its original name of National Mortgage Association but is more commonly referred to by its acronym: Fannie Mae (Federal National Mortgage Association). The name comes from the initials “Federal” and “National.” Additionally, its initials play on World Wrestling Entertainment, which used to be called SLM Corporation – Student Loan Marketing Association!

Before applying for a mortgage loan, it’s essential that you fully comprehend its rules and requirements. While each lender has guidelines to follow when providing mortgages, most generally adhere to those set out by FNMA, which outline income/credit requirements, property valuation criteria, and mortgage insurance needs.

FNMA mortgage program offers prospective homeowners numerous advantages, including lower down payments and flexible qualification criteria. Furthermore, nontraditional sources of income such as alimony and long-term disability income may qualify. Moreover, gift funds or seasoned equity may be used as down and closing costs payments.

FNMA has been around since 1938 and currently ranks in the top 25 U.S. corporations by revenue. Their mission is to increase mortgage liquidity through secondary market activity; unlike other GSEs, however, FNMA does not lend money directly to consumers, rather, it keeps capital flowing by purchasing mortgages from banks and lending institutions. While their stock has seen some fluctuations over the years, overall, they remain profitable businesses.


Unsaved renters aged 18-34 reported saving for a down payment as their primary barrier to homeownership, according to a Trulia survey. Fannie Mae has made life easier for these buyers through its HomeReady mortgage, with lower down payment requirements (just 3%!) than traditional loans – as well as flexible financing sources like gifts or grants for their down payments – making this mortgage perfect for first-time home buyers who may not yet have significant savings available to them.

The 3% down payment requirement is significantly lower than the 20% many buyers believe they must save up to purchase their home, making it much faster and easier for first-time buyers. Furthermore, it enables borrowers to avoid costly private mortgage insurance policies (PMI), saving thousands over the loan’s lifespan.

HomeReady mortgages provide many benefits, one being their flexibility: they can be used for new and existing homes. Unlike conventional loans, this one allows borrowers to purchase homes anywhere – including rural areas – as it offers up to 97% loan-to-value ratios in specific scenarios, allowing borrowers to buy larger homes while lowering monthly mortgage payments.

HomeReady mortgages feature more accommodating income requirements than conventional loans, allowing borrowers to use both their income and that of co-borrowers as income for qualifying – counting border rent as additional income depends, too! This flexibility can be beneficial for multigenerational households or those with extended families. Furthermore, those with a financial interest in another mortgaged property may include that amount as household income under HomeReady’s program.

HomeReady applicants must fulfill minimum credit and income criteria and take an approved homeownership education course; however, these requirements are worth paying for its flexibility and benefit your Flat Branch Home Loans loan officer to discuss more about what HomeReady has to offer you.


Becoming pre-approved for a mortgage is the first step toward home buying, and once pre-approved, you can start viewing properties online by price, location, and more. In addition, find out which homes qualify for the HomePath Ready Buyer program (up to 3% closing costs assistance), and look out for homes marked “First Look,” meaning they aren’t open to investors or house flippers.

Fannie Mae maintains an extensive portfolio of properties, which it sells through the HomePath program to buyers at below-market prices to increase housing supply. Owning one of these homes may offer a great opportunity, though purchasing them involves risk. First off, buying from an agency such as Fannie Mae can take longer than dealing with private sellers; secondly, there may be additional costs related to owning, such as property taxes or PMI, which need to be factored in.

HomePath properties may require you to pay higher interest rates than traditional loans; however, their benefits could outweigh these costs. Furthermore, you can purchase one with a smaller down payment than would be necessary with conventional loans, making this an attractive option for first-time buyers who do not yet have access to funds for a large down payment.

By financing your mortgage through HomePath renovation mortgages, you can avoid PMI altogether and save money and time on closing. Closing processes typically occur 45 days faster than traditional loans.

HomePath eligibility requires being a first-time homebuyer who intends to use the property as their primary residence and move within 60 days after closing. You could even receive an additional $500 credit by participating in HomePath’s homeownership course and homebuyer education class.

Home Equity Line of Credit

Home equity lines of credit (HELOCs) use your home’s equity to give you access to cash for major expenses like renovation. While HELOCs offer advantages over other forms of lending, it’s important to weigh their disadvantages against your financial circumstances and goals before making your decision.

HELOCs are secured by your home, meaning the lender has a second lien against it and can seize possession if you fail to meet payments on your credit line. This could prove dangerous if the market crashes or you become unemployed and are forced to sell your house quickly; furthermore, closing costs and fees when applying for one may soon add up.

To be eligible for a HELOC loan, you will need sufficient home equity and an excellent credit history. Lenders will consider factors like debt-to-income ratio, credit score, and home value when determining how much of a loan they will provide you. Furthermore, requests to borrow more than 80% of your home value require meeting additional criteria like minimum credit score and income requirements.

One advantage to HELOCs is their wide availability; with various lenders providing HELOCs, there should be plenty of choices for you. Remember, though, that each lender may vary in terms and requirements for this form of credit – so be sure to shop around and compare rates before settling on one lender as your HELOC provider.

If you’re exploring your options for home equity financing, NerdWallet’s Home Equity Loan & Line of Credit Calculator could be just what you need. Using this tool can help determine your eligibility for both home equity loans and HELOCs while giving an idea of their benefits compared to each other, which might best meet your needs.