Understanding Your Fannie Mae Mortgage

Do you have a Fannie Mae Mortgage now or are you considering a new mortgage that will be approved using Fannie Mae DU approval system. Most home loans are with Fanniemae but the Borrowers do not understand the role of Fanniemae. Government home loans are explained to help you get a better understanding of them.

First, find out if Fanniemae owns your loan. https://knowyouroptions.com/loanlookup  to see if you have a Fanniemae mortgage. If Fanniemae owns your current mortgage and you got the mortgage before May 31,2009, you might be eligible for the Fanniemae Home Affordable Refinance program or more commonly known as HARP. Many refer to it as the Obama Refinance program also.

Fanniemae California mortgages are very common and many homeowners who are eligible for the HARP program have not yet used it to refinance. We completed a survey of Fanniemae Los Angeles home loans and found out about only 40% of the eligible homeowners have taken advantage of getting a HARP refinance.

DU Approval vs LP Approval

Homebuyers are confused when their loan person tells them they are DU or LP approved. DU is the Fannie mae approval automated system and LP is the Freddie Mac automated approval system. Both have a different set of loan guidelines and one may be a much better choice over the next given your home loan scenario. Freddie seems to offer a bit more to the home buyer who has had change in the last few years. For example, started a new job or graduated from school.

Knowing the differences between Freddie and Fannie are very important and you will want to work with a loan professional who has experience with both. Where one might turn you down, the other will approve your loan.

Fanniemae DU Approval

Fanniemae has a program called Desk Top Underwriter. It is very sophisticated and can analyze a mortgage application and issue approval based on the information entered. The DU will also tell what is needed to complete the new home loan.

If you are purchasing a new home, most likely it will be run thru the DU program to receive approval early on. Then the Loan Officer can work with the Borrower to get the items the DU asked for and once the file is complete, submit it to the Underwriter who manually goes thru it.

We are very experienced with Fanniemae guidelines for mortgages.  If you want pre-approved home loan for a new home all we have to do is take an application and run it in DU to receive initial approval.We found with Oregon home loans, the DU Approval is almost always approved.