Question:

Does Fannie Mae offer 5/1 adjustable rate mortgage (5/1 ARM)?

Answer:

Yes, they do. They offer a whole suite of ARMs, including the 5/1 adjustable rate mortgage (5/1 ARM). Fannie Mae works with CMT and LIBOR indices, and have convertible and non-convertible options for loans and mortgage backed securities (MBS).

The 5/1 adjustable rate mortgage (5/1 ARM) offered by Fannie Mae is available for single-unit properties, condominiums and co-ops, and is assumable after the initial 2% adjustment. It is very appropriate for young couples who expect their income to increase within the next few years since now they could qualify for a larger amount with an ARM, rather than an FRM, and will be able to get the home they want now rather than have to wait until their income grows.

Have in mind, manufactured homes are not eligible for a 5-1 adjustable rate mortgage (5/1 ARM), but Fannie Mae say they are open to negotiation, so it might be worth the try.

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