Fannie Mae, the largest U.S. home funding source, said on Monday it will sell $500 million of bills on Wednesday.

The company will sell $250 million of three-month bills due Aug. 8, 2012, and $250 million of six-month bills due Nov. 7, 2012. The bills will be sold via a Dutch auction.

In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from authorized dealers from 9 a.m. until 9:45 a.m. Settlement is May 9-10.