Posted by River City on October 14, 2005 at 13:52:34:
A performance mortgage is generally obtained by either first time home buyers or by people with a poor credit history. If the borrower makes payments according to the terms of the Note (on time) for the first 24-36 months, the lender will reduce the rate of interest charged on the loan. Since this is a Fannie Mae program, most lenders will offer this option as long as they have an investor to purchase the loans.