The mortgage program for the buyer is discontinued. Any special loan program that is available from small lenders, investment pools, or investment groups through mortgage companies may be available today and gone tomorrow.
Mortgage programs change regularly. Unless the mortgage company can lock in funds or a guarantee of funds for a unique program, it could end prior to settlement. The property does not qualify for Fannie Mae financing.
Most lenders in the United States follow a series of guidelines for mortgages set by the Federal National Mortgage Association, commonly known as Fannie Mae. These guidelines are followed in order to ensure that lenders can sell their loans in bundles on the secondary mortgage market.
The Federal National Mortgage Association sets the standard for mortgage loans. Although most homes qualify, certain properties, such as small farms, commercially zoned homes, and other unique properties may not. Fannie Mae restricts the appraised value that can be added for barns, outbuildings, additional land, and other features that may benefit a particular buyer and seller, but are not common to most homes.