Fannie Mae purchases or securitizes conventional, fully amortizing, fixed-rate first mortgage loans. The loan 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.
The table below provides references to the Announcements that have been issued that are related to this topic.