HFAs & Public Entities
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
- No first-time homebuyer requirement
- Borrower income limits set by the HFA
- Cancellable mortgage insurance*
- Reduced mortgage insurance coverage with no loan-level price adjustment (LLPA) for loans at or below 80% Area Median Income (AMI)
As Low as 3% Down Payment
Low down payment, conventional mortgage with up to 97%/ 105% CLTV financing for home purchases.
Cancellable Mortgage Insurance*
Borrowers may have the option to cancel their mortgage insurance once their home equity reaches 20%. This can result in lower monthly payments down the road.
* Restrictions apply
No First-time Homebuyer Requirement
HFA Preferred is available to qualifying first-time or repeat homebuyers with low-to-moderate incomes.
Flexible Sources of Funds
No minimum contribution requirement from borrower’s own funds (one-unit properties).
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|
For a detailed comparison click here.
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.
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.