Definition of "Tandem plan"

Jeffery Roney real estate agent
Jeffery Roney, Real Estate Agent Premier Realty Group

Government program of providing low interest rate mortgages to low-income qualified buyers. In the tandem program, the Federal National Mortgage Association (FNMA) purchases low interest rate mortgages at a discount from the Government National Mortgage Association (GNMA). In doing this, GNMA subsidizes the low-income home buyer and incurs a loss on the transaction.

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