Fannie releases selling guide

Federal Issues Fannie Mae Mortgages Consumer Finance

On August 3, Fannie Mae issued its Selling Guide for Single Families. According to the guide, Fannie Mae will begin to buy mortgage loans with lender-funded grants, including down payment assistance, closing costs, or financial reserves. Specifically, the guidance noted that: (i) the loan must be a HomeReady loan used for a purchase transaction; (ii) “[t]he borrower(s) must make a 3% contribution from their own funds, other eligible sources of funds as described in Chapter B3-4, Asset Assessment, or through a Community Seconds loan”; and (iii) “[t]he lender must have a documented program that provides grants for low- to moderate-income borrowers, community development, equitable housing initiatives, or similar initiatives.”