Originating & Underwriting

HFAs & Public Entities

The 2024 area median incomes (AMIs) have been implemented in Desktop Underwriter®(DU®), Loan Delivery, and the Area Median Income Lookup Tool. At a FIPS-level, 79.6% of AMIs increased for 2024, meaning more borrowers may meet AMI requirements.


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

New: Expanded time allowed to complete housing counseling for $500 LLPA credit

As of 6/5/24 housing counseling from a HUD-approved agency can now be completed any time within the 12 months prior to loan closing to qualify for the $500 LLPA credit on HomeReady® and HFA Preferred™ purchase loans.


  • 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.

Housing Counseling

For HFA Preferred purchase transactions when buyers have received housing counseling from a HUD-certified housing counselor within the 12 months prior to the loan closing date, lenders may be eligible to receive the $500 loan-level price adjustment credit if they complete the Housing Counseling data fields in DU or on the Supplemental Consumer Information Form (Form 1103) for manually underwritten loans and deliver the loan with SFC 184.

Learn more about housing counseling.

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.