Ginnie Mae
Definition of "Ginnie Mae"
Looking to understand what is Ginnie Mae? You’ve been hearing about it and knows not what it means. Let us help with the most succinct Ginnie Mae definition possible: Ginnie Mae is the Government National Mortgage Association (GNMA). It’s basically the phonetic sound of the initials. Say “GNMA” quickly and you get the “Ginnie Mae” sound.
The mission of Ginnie Mae is to fund high-risk mortgages for high-risk borrowers that are typically located in areas approved for government construction projects that have no other funding sources. The government body also offers guarantee mortgages issued by others, such as commercial banks, mortgage banks, and insurers.
You can’t tell Ginnie Mae’s history without talking about Fannie Mae. Ginnie Mae is almost like a younger sister or spiritual daughter of Fannie Mae. Here’s the timeline: Fannie Mae was founded in the 1930’s as a fully government-owned company, then became a mixed-ownership company, and then, in 1968, when it came time to go full private sector, the Government thought it was important to conserve a similar federal operation, thus spawning Ginnie Mae and making it part of the Department of Housing and Urban Development (HUD) in order to expand affordable housing finance. Ginnie Mae is the primary financing mechanism for all mortgage loans that are government-insured.
Don’t know if you qualify for Ginnie Mae and this whole names-galore – yes, because we didn’t even bring up the Freddie Mac definition to make it simple – is it making you confused? Reach out to a real estate agent and let him (or her!) point out the best direction for your case.
Popular Real Estate Terms
(1) Mildly convex arch built into a load bearing beam, girder, or truss to counteract any load bearing stress placed on it. (2) Slight slope designed into a structure such as a drive4way or ...
Provision in a mortgage that requires the final payment to be substantially more than all other payments. ...
Natural resource, such as oil, coal, and timber, having a limited useful life and subject to depletion. Such assets decrease in worth primarily due to the extraction of the valued commodity ...
A purchase of real property made on account. Loan extended to business or individuals to buy real estate. In taxation, a dollar-for-dollar reduction in taxes. An example of a tax ...
Term indicating a resemblance or analogous to a legal classification. For example, a quasi corporation, quasi contract, quasi possession, quasi offense. ...
Group of investors pooling their money to purchase real estate. ...
A capitalized expenditure usually extending the useful life of a building or improving it in some manner over and above the original condition. In contrast, a maintenance or repair expense ...
Financial standing of a debtor as a basis to pay obligations. ...
Business entity providing water services in a particular locality. ...
Have a question or comment?
We're here to help.