Fannie Offers 40-Year Loan

Fannie Mae has expanded its product line to include 40-year fixed-rated and hybrid adjustable-rate mortgages.Starting June 1, all Fannie lenders can submit 40-year mortgages through its automated underwriting system, Desktop Underwriter, for approval. Previously, the secondary market agency limited originations of 40-year mortgages to 22 credits union that participated in a pilot program. "The 40-year mortgage is ideal for borrowers who face affordability issues and think homeownership is beyond their reach," Fannie said. In addition to a standard fixed-rate mortgage, Fannie is offering 3/1, 5/1, 7/1 and 10/1 hybrid ARMs that amortize over 40 years. Freddie Mac does not offer 40-year loans.