Mortgage-Backed Securities
You may purchase bonds from the secondary mortgage market,
where government lenders such as Fannie Mae (Federal National
Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage
Corporation) resell existing mortgages.
These companies purchase mortgages from lenders and then
repackage them as securities and sell them to investors. These
securities are guaranteed by either the Federal Housing Authority
(FHA loans) or the Department of Veterans Affairs Loans (VA
loans).
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