Selling Guide

Published October 2, 2018

B2-1.3-01: Fixed-Rate Mortgages (08/20/2013)

This topic contains general information on fixed-rate mortgages.

Fixed-Rate Mortgage Eligibility

The eligibility requirements described in this topic apply to first mortgages. Eligibility criteria for second mortgages are determined when the lender requests a Master Agreement to cover second mortgage deliveries (see B2-1.4-01, Mortgage Loan Limits).

Fannie Mae purchases or securitizes conventional, fully amortizing, fixed-rate first mortgages. The mortgage can be subject to a temporary interest rate buydown plan, provided that the subject property is secured by a principal residence or a second home property. (See B2-1.3-05, Temporary Interest Rate Buydowns.)

The payments must be structured as follows:

  • level monthly installments of principal and interest (P&I),

  • due on the first day of each month, and

  • payment of interest in arrears.

For credit score requirements in association with products and LTV/CLTV/HCLTV limitations, see the Eligibility Matrix.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcement SEL-2013–06 August 20, 2013
Announcement 09-29 September 22, 2009