Residency

• Fannie Mae applicants must be U.S. residents and have a Social Security number. Resident aliens are also eligible for Fannie Mae loans.
  
  

Occupancy

• Borrowers must occupy the property being purchased as a primary residence (homestead) or can use a Fannie Mae loan as a vacation loan if they occupy the property for at least a few months a year.
  
  

Credit

• The current minimum credit score for a Fannie Mae loan is 680. Applicants cannot have been late on a payment for the past two years.
  
  

Income

• Borrowers must be employed for at least two years and be able to show proof of income. Verifiable income can be provided in the form of paystubs, W-2 forms or income tax return statements.
  
  

Debt

• A borrower's debt cannot exceed 36 percent of their gross monthly income. If debt ratios exceed this, the loan will be denied until the borrower can pay down debts.
  
  

Expert Insight

• Fannie Mae was bailed out by government funds in 2007. This has resulted in underwriting guidelines being much stricter than they were in recent years and subject to change often.