Originating & Underwriting

HFAs & Public Entities

Working together to bridge the affordable housing gap

Together with our lender partners, Fannie Mae works closely with many Housing Finance Agencies providing products that deliver affordable options to low-to-moderate income borrowers. 

Serve more borrowers with HFA Preferred

HFA Preferred™ is Fannie Mae’s low down payment conventional mortgage product that participating HFAs can use to serve low-to-moderate income borrowers exclusively through their lender partners.

HFA Preferred Lender video


  • Down payment assistance available through many HFAs
  • Lender-funded grants permitted under certain circumstances
  • No first-time homebuyer requirement
  • Borrower income limits set by the HFA
  • Cancellable mortgage insurance*
  • Reduced mortgage insurance coverage for loans at or below 80% Area Median Income (AMI)

Why choose HFA Preferred?

Benefits HFA Preferred Mortgage FHA
Down payment as low as 3% Yes No
Cancellable mortgage insurance* Yes No
Lender can order the appraisal immediately Yes No
No geographic restrictions on loan amounts Yes No
Day 1 Certainty® freedom from certain representations and warranties Yes No

*Restrictions Apply

For a detailed comparison click here.

Homeownership Education

To qualify for purchase loans with an LTV greater than 95%, homeownership education will be required for at least one borrower when all occupying borrowers are first-time homebuyers.   ​

Learn more about homeownership education.

Manufactured Housing

The lack of affordable housing supply makes manufactured homes a great solution. An HFA Preferred mortgage can be used to purchase a manufactured home helping your prospective homebuyers get the home they want at a price they can afford. Click here to learn more.