Long Term Financing
Written on March 13, 2008
Long-term financing comes from two major mortgage markets. There is the Conventional market and the Sub-prime market. The conventional market is backed by Fannie Mae or Freddie Mac, which are semi-government agencies. Because of their backing of many of the loans in the conventional market, these agencies regulate what loans are acceptable in this market. Conventional loans follow their guidelines.
The Sub-prime market refers to any loans made outside of the oversight of Fannie and Freddie.
Filed in: Financing.