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.
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
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.
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.