Fannie Mae Fixed Rate Mortgage Loans

Meet Our PDCU Mortgage Specialist

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What Is the Fannie Mae Home Loan Program?

Can I Qualify for a Fannie Mae Loan With a Low Credit Score?

• Predictable Monthly Payments: Your interest rate and monthly payments remain the same throughout the life of the loan.
• Stability: Fixed rates provide financial stability and simplify long-term budgeting.
• Flexibility: Available for various property types and occupancy situations.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

Private mortgage insurance, or PMI, is insurance that helps protect the lender if a borrower stops making payments on a conventional mortgage loan. PMI is typically required when your down payment is less than 20% of the home’s purchase price or original value.

When PMI is usually required

PMI is most commonly required on a conventional mortgage when you put less than 20% down. It increases the cost of the loan, but it may also help you qualify for a mortgage sooner if you do not have a larger down payment.

When PMI may be removed

In many cases, you can ask to remove PMI once your loan balance reaches 80% of the home’s original value and you meet the lender’s requirements. In general, PMI is automatically terminated when your loan balance is scheduled to reach 78% of the home’s original value, as long as your loan is current.

Need help?

If you have questions about PMI or your mortgage options, connect with a mortgage loan officer for personalized guidance.

Fannie Mae and Freddie Mac are both government-sponsored enterprises that help support the U.S. mortgage market. They do not make mortgage loans directly to homebuyers. Instead, they buy qualifying mortgage loans from lenders after the loans are made, which helps lenders free up funds to make more home loans.

What they have in common

Both Fannie Mae and Freddie Mac primarily work with conventional conforming loans. That means the loan must meet certain guidelines for loan limits, down payment, credit, income, and debt levels. Both organizations help support common mortgage products such as fixed-rate mortgages, adjustable-rate mortgages, and certain low down payment programs.

How they are different

The main differences are usually in their program details and underwriting guidelines. Fannie Mae and Freddie Mac each have their own rules for how certain loans are evaluated, and they also offer different affordable lending programs. For example, Fannie Mae is known for HomeReady, while Freddie Mac is known for Home Possible.

What this means for borrowers

Most borrowers do not choose between Fannie Mae and Freddie Mac directly. Instead, your lender reviews your financial situation and helps place your loan into the mortgage program that best fits your credit profile, income, down payment, property type, and overall loan scenario. In many cases, the difference is mostly behind the scenes.

Why they matter

Because lenders can sell qualifying loans to Fannie Mae or Freddie Mac, more money stays available for future home loans. This helps support mortgage availability, competitive rates, and clear standards for many conventional mortgage products.

Need help comparing mortgage options?

If you want help understanding your options, connect with a mortgage loan officer for personalized guidance.

For most borrowers, there is not a major day-to-day difference between a Freddie Mac Fixed Rate Mortgage and a Fannie Mae Fixed Rate Mortgage. Both are conventional fixed-rate mortgage options that can offer predictable monthly principal and interest payments over the life of the loan.

What is different behind the scenes

The main difference usually comes down to which set of guidelines your loan fits best. Freddie Mac and Fannie Mae each have their own underwriting standards and program details, so one option may be a better fit than the other depending on factors such as your credit profile, income, down payment, property type, and overall loan scenario.

How PDCU helps you choose

We run your application through both systems and help identify the option that gives you the strongest approval path and best overall fit. The goal is simple, help you move forward with the most favorable structure available for your situation.

Talk with a mortgage loan officer

If you want help comparing your options, connect with a mortgage loan officer to discuss your situation and get personalized guidance.

An NMLS ID is a unique identification number assigned to mortgage loan originators and mortgage lending institutions through the Nationwide Multistate Licensing System & Registry. It helps identify the person or company handling your mortgage and supports transparency in the mortgage process.

Why it matters

An NMLS ID allows consumers to verify the identity and licensing information of a mortgage professional or lender. It can also help you confirm who you are working with when you review mortgage advertisements, emails, disclosures, and loan documents.

Where you may see it

You may see an NMLS ID on mortgage websites, marketing materials, email signatures, loan paperwork, and other mortgage-related communications. If you want to look up a mortgage professional or lender, you can search the NMLS Consumer Access website.

Need help?

If you have questions about an NMLS ID or want help identifying the mortgage professional working with you, call 844-700-7328 during business hours.

• Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
• Last 2 years of W-2 forms – Prove your employment history and income stability.
• Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
• Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
• Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
• Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.

1. Gather everything before you apply — it can save you weeks of delays.
2. Make sure all pages of the bank statements are included.
3. Include all W-2s and tax returns, even if you filed jointly.
4. Scan or take clear photos of your documents for easy upload.

To check the status of your loan application, contact People Driven Credit Union at 248-263-4100 during business hours or reach out to your assigned loan specialist if you have their contact information. Be ready to verify your identity and share details such as your name, member number, or application number so we can review your application with you.

When you check your status, it is also a good idea to ask whether any additional documents or information are needed to keep your application moving. Review times can vary based on the loan type and the information required, so contacting us directly is the best way to get the most current update on your application.