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
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.