Get Form 3021 2001-2024

Fannie Mae and Freddie Mac Requirements Credit score of at least 640 or 620 in some cases. Down payment as low as 3% No recent major derogatory credit factors, such as foreclosure, short sale, bankruptcy or repossession.

We encourage you to contact your servicer (often your bank or lender) to verify that your mortgage loan is owned or guaranteed by Fannie Mae or Freddie Mac, or you may verify it yourself by accessing the following websites: Fannie Mae .KnowYourOptions.com/loanlookup, Freddie Mac .freddiemac.com/mymortgage.

The primary difference between Freddie Mac and Fannie Mae is where they source their mortgages from. Fannie Mae buys mortgages from larger, commercial banks, while Freddie Mac buys them from much smaller banks.

Although Fannie Mae loans offer a low down payment option of 3%, if your down payment is not equal to a certain amount, you'll need to purchase mortgage insurance. This extra monthly cost is added to your mortgage.

In order to qualify, you'll need to make no more than 80% of the area median income. There are also similar programs available if you're looking to refinance with a lower income and higher DTI ratio. If you're ready to look into your loan options, you can apply online today.

The key comparisons of the loans are that a FHA loan has a lower credit score requirement that is lower to qualify and a 3.5 percent down payment which may be less than a Fannie Mae loan. The Fannie Mae loan has a higher credit score requirement at 620 to 640 which is higher than the FHA loan.

Fannie Mae and Freddie Mac were created by Congress. They perform an important role in the nation's housing finance system – to provide liquidity, stability and affordability to the mortgage market.

Fannie /Freddie loans require a minimum FICO credit score of 620 to qualify, but the approval process for applicants with credit scores between 620 and 660 may take longer than higher scores. A 20% down payment is not the only option! You can put down as little as 3%.