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B2-1.4-01, Fixed-Rate Loans (12/14/2022)

This topic contains general information on fixed-rate loans.

Fixed-Rate Loan Eligibility

Fannie Mae purchases or securitizes conventional, fully amortizing, fixed-rate first mortgage loans. Conventional fixed-rate loans are not assumable as of the note date. When selling such loans to Fannie Mae, the Assumption Indicator in the Loan Delivery application must be "False" (which means not assumable).

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 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. See  B2-1.4-04, Temporary Interest Rate BuydownsB2-1.4-04, Temporary Interest Rate Buydowns for additional information.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2022-10 December 14, 2022
Announcement SEL-2019-01 February 06, 2019