Duty to Serve – Affordable Opportunities in Underserved Markets
The Duty to Serve rule directs Fannie Mae to improve access to mortgage financing for those of modest means in three housing markets posing persistent challenges — and significant opportunities:
Manufactured housing (MH) — Including single- and multi-width MH lending, as well as MH Advantage®.
Affordable housing preservation — Including energy efficiency and shared equity mortgages.
Rural housing — Including support for Native American populations and agricultural workers, and other lending in rural areas and persistent poverty regions.
LLPAs waived for eligible loans
Loans that meet Duty to Serve requirements are eligible for LLPA waivers, lowering costs and making homeownership more affordable and attainable.
Eligible Loans
To qualify for LLPA waivers, a loan must meet three initiative-wide requirements, as well as requirements specific to the type of mortgage loan being sold (MH, energy efficiency, shared equity, high needs rural, or Native American or agricultural worker). The Duty to Serve LLPA waiver Special Feature Code (SFC) will automatically be applied to eligible loans in Desktop Underwriter® (DU®).
All Duty to Serve-eligible loans must meet the following requirements:
- The total annual qualifying income must be ≤ 100% of the Area Median Income (AMI) for the property’s location. Lenders must refer to the AMIs that Fannie Mae uses in Desktop Underwriter® or our AMI lookup tool and may not rely on other published versions (such as AMIs posted on huduser.org).
- The property must be an owner-occupied, principal residence.
- The loan must be a purchase money transaction or a limited cash-out refinance (LCOR) transaction.
Additional Requirements and Resources
