The full form of GNMA is Ginnie Mae
This acronym is used to represent “Ginnie Mae” which is the nickname of the Government National Mortgage Association. This government-owned program offers banks and private investors a type of security on certain loans that they approve for individuals buying a home.

Origin of GNMA

Ginnie Mae is part of the Federal Housing Authority (FHA). It was developed in 1968 to boost homeownership opportunities to people with less than the average essentials to get a regular home loan. The process still involves someone getting approved for a loan through a private investor or financial institution, but these institutions are Ginnie Mae approved. This means that if someone defaults on the repayment of their loan, this association of the federal government will step in and pay the missed payments so that the private investors and banking institutions never have to go without the payment being made and worrying about missed payments of defaulted loans. This government funding organization pays for all payments throughout the foreclosure process to ensure the private lending institutions still get all of their repayment promptly. Due to this financial security of the loan, it can make it easier for less-than-average homeowners to get approved for a home loan.

Conversation Examples
A text conversation between two friends.

Friend 1: We are having such a difficult time getting a home loan.
Friend 2: Why?
Friend 1: Because Frank and I have really bad credit right now since he lost his job a few years back. We are still trying to recover from it.
Friend 2: Have you looked into a GNMA loan?
Friend 1: No, what is that?
Friend 2: It’s a government-backed loan that still goes through the bank, but from what I hear it’s easier for people with less than average credit to get approved for.
Friend 1: Thanks! I will look into it.