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
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.
Additional Resources
- 97% LTV Options
- Affordable Housing Initiatives
- Area Median Income Lookup Tool Tips
- Community Seconds Checklist
- Down Payment and Closing Cost Assistance Fact Sheet
- Down Payment Assistance Tool
- Housing Counseling
- Entering the Data for an HFA Preferred Loan in DO/DU
- HFA1 Affordable Homeownership Lender Toolkit
- HFA Preferred Incentive Program
- Working with Housing Finance Agencies
Benefits
- 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)
Features
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.
