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Most American homeowners:

• Live in homes whose loan sizes are less than $417,000
• Own one home and call it a primary residence
• Can document their income using W-2 statements and/or tax returns
• Have at least a modest savings account
• Have at least the average credit score of 678
• Do not have a history of bankruptcy or foreclosure
• Have monthly income that at least triples their monthly debts

These are the general and basic criteria of a Fannie Mae and Freddie Mac loan. 

Fannie and Freddie are government-sponsored entities whose charter is to help keep mortgage money flowing to people that want it.  The rough rules by which they'll lend are outlined above and encompasses the majority of America.

On the other hand, the host of privately-funded lenders that have bankrupted, merged or otherwise shut down had rules that apply to a small subset of Americans with very specific needs. 

Think grocery store shopping:  The GSEs are the regular bread, the mortgage banks are the gluten-free.

The majority of Americans qualify for Fannie- and Freddie-backed home loans so you shouldn't get nervous when reading the headline news.  For most of our country, the lending options are plentiful -- everyone can eat from world's largest loaves of bread.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.