Fannie Mae Essay

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Good news for the home buyers in Chicago from Fennie Mae --

What is Fannie Mae --
Fannie Mae is an abbreivation for The Federal National Mortgage Association. This government sponsored organisation serves the people of the United States by helping them in their housing needs. They provide finance to mortgage lenders and gives access to people of America for afforfable mortgage needs at all times. They ensure that the borrower gets sustainable homeownership and a workforce rental housing with the help of their financing. They have given life to the dreams of several Americans who are looking for a home of their own.

Customer satisfaction and thier needs are the center of focus for the team of Fannie Mae. It is a leading source of financing …show more content…

Recently the company announced that it will make the Fannie Mae Loan limit increase to $453,100. This is as per the changing needs of their customers.

Fannie Mae and Freddie Mac are customer friendly companies and they aim to help Americans in any sort of home needs. They can even make it possible to get a 30-year fixed-rate mortgage deal from a lender. They are the connecting link between the lender and the buyer where buyer gets loan for his home and the lender gets security for his money. The homeowners can get flexible, stable, and predictable payment models for the entire life of the loan. This institute serves as a helping hand for the renters, homeowners and the …show more content…

This amount of the maximum “conforming” loan size which can be sold to Fannie Mae and Freddie Mac has increased to $453,100 for single family home. This is second time in the history of the companies since 2006. Last year the limit of conforming loans was increased first time after the housing crisis of 2006.

As far as the officials of the FHFA are concerned, they say that the reason for increase is the rising property prices all over the nation since the third quarters of 2016 and 2017. The home prices have shown an increase of 6.8 percent and so the loan limit was also increased by 6.8 percent.

The growing demand of houses and properties has seen a rise in the property rates in Chicago and in some areas of Chicago the prices are really pushed up. In this scenario it becomes difficult for people to fulfill their housing needs. Year after year the prices are soaring high with an increase of 4.86% in the Chicago area and in Illinois the increase is 3.8% in the third quarter of the year. For other states the rise is around 9.6 percent in Nevada, 10 percent in Arizona, and 11.6 percent in Washington,