Refi rejected - Fannie Mae won't buy loan! What's up?

[Mark Beeson]

We have excellent credit.  Want to refi a single family with existing $32K mortgage that we have owned for 20 years.  Minimum amount bank would refi is $60K for $75K appraisal.  Denied due to "Fannie Mae won't buy the loan".  What's going on??

[Jay Hinrichs]

Originally posted by @Rene Owczarski:

@Mark Beeson I know that Fannie has a Max loan amounts, and that depends on your zip code, but I haven't heard of a minumum loan amount, and their policy confirms that. But I do know that with very low loan amounts, you can start to run into high cost issues, depends on the state where the property is located. Was this a verbal denial, or a written denial letter?

Fannie Mae - B2-1.5-01, Loan Limits (02/06/2019)

I think they call this over lays that the bank can put on these loans.