Mortgage-Backed Securities

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).