HFA Preferred Loans

This document explains the specific steps for entering data for a Fannie Mae HFA Preferred™ loan. This document is not intended to provide detailed instructions for entering all the loan application data in Desktop Underwriter® (DU®).

Note: Lenders must be approved to deliver HFA Preferred loans to Fannie Mae. For details on HFA Preferred loans, lenders should contact their state Housing Finance Agency (HFA) to determine if they are offering HFA Preferred loans; and mortgage brokers should contact their sponsoring wholesale lender.

1. For the loan casefile you want to submit as an HFA Preferred loan, click section L3. Mortgage Loan Information in the navigation bar.
   
   

2. In the L3. Mortgage Loan Information screen, click the Edit icon.

3. In the Community Lending Product drop-down list, select HFA Preferred.

4. If you are using a Community Seconds® mortgage, select the appropriate option from the Community Seconds Repayment Structure drop-down list. Otherwise, leave this field blank.
   
   

5. When you are finished entering the necessary data for HFA Preferred™ and other required fields in the Mortgage Loan Information screen, click Done.
6. If a gift or grant will be used, expand section4. Loan & Property Information in the navigation bar and click Gifts or Grants. 

7. In the4d. Gifts or Grants You Have Been Given or Will Receive for this Loan screen, click the Edit icon. 
8. Complete the applicable fields:
   1. Choose the borrower who owns the account in the Account Owner field.
   2. Select Gift or Grant (whichever is applicable) in the Asset Type drop-down list.
   3. Select the agency providing the gift or grant from the Source drop-down list (i.e. Federal Agency, Local Agency, State Agency, etc.).
   4. Enter the amount of the gift or grant in the Cash or Market Value field.
   5. If there is more than one gift or grant, click +Add Gift or Grant and repeat steps a through d.