The Freddie Mac HFA Advantage® mortgage is a conventional mortgage product available exclusively to housing finance agencies (HFAs) seeking strategic solutions to diversify their product offerings and portfolio mix while expanding homeownership responsibly.
HFA Advantage Mortgage Features
Freddie Mac is continually offering solutions to advance affordable homeownership which is why we’ve added new enhancements to HFA Advantage to help you qualify more very low, low- and moderate-income borrowers.
Whether your HFA is a Freddie Mac Seller/Servicer or sells through one or more Freddie Mac Seller/Servicer partners, HFA Advantage offers enhanced flexibility for maximum financing.
Who is HFA Advantage® for?
- Borrowers who qualify for HFA homeownership programs.
- First-time homebuyers, repeat buyers and borrowers seeking no cash-out refinances.
- Borrowers purchasing or refinancing one- to four-unit properties, manufactured homes, condominiums, homes in planned unit developments (PUDs), and CHOICEHomes®.
HFA Advantage Overview Video
Watch our new video and discover how HFA Advantage expands homeownership opportunities for very low-, low, and moderate-income borrowers.
HFA Advantage Mortgage Features
- Borrower Eligibility/Borrower Profile
At least one borrower must occupy the property as their primary residence
Non-occupying borrower(s) are permitted
- HFAs establish their own income limits and down payment assistance
- Homeownership and landlord education per HFA program or CreditSmart® Homebuyer U, as applicable
- Use of Loan Product Advisor® recommended for broader product flexibility
- AUS alternatives in lieu of Loan Product Advisor considered
- Competitive standard credit fee in yield (i.e., guarantee fee)
- Loan-level credit fees (i.e., delivery fees) are waived for HFA borrowers
- Cash & Guarantor executions
- Long-term contracts that may be amended subject to 90 days advance notice
- Mortgage Insurance
- Minimum MI coverage required for HFA borrowers earning 80% AMI or less
- Custom MI® available for borrowers earning more than 80% AMI subject to a credit fee in price
- Lender-paid and financed mortgage insurance premiums permitted
- Property Type/Eligible Properties
- One- to four-unit primary residences
- Planned Unit Developments (PUDs)
- Manufactured homes, including manufactured homes that are CHOICEHomes as described in Guide Section 5703.9
- Maximum LTV Ratios
- One-unit primary residences, maximum 97% loan-to-value (LTV) and 105% total loan-to-value (TLTV) ratios with Affordable Seconds®
- Two- to four-unit primary residences, maximum 95% LTV and 105% TLTV ratios with Affordable Seconds
- Manufactured homes: Maximum 95% LTV and 95% TLTV ratios
- Non-occupant borrower(s): Maximum 95% LTV and 105% TLTV ratios
- Special Requirements
OWNERSHIP OF OTHER PROPERTIES
The occupying borrower(s) must not have an ownership interest in more than two financed residential properties, including the subject property, as of the Note Date, or for Construction Conversion and Renovation Mortgages as of the Effective Date of Permanent Financing.
There is no maximum monthly housing expense-to-income ratio. Maximum debt payment-to-income ratio:
- Determined by Loan Product Advisor
- Manually underwritten mortgages: 45%
BORROWER CONTRIBUTION AND RESERVES
- One-unit primary residences do not require a minimum borrower contribution from borrower personal funds
- Two- to four-unit primary residences require a 3% contribution from borrower funds and/or other eligible sources of funds
- No reserves required unless Loan Product Advisor determines reserves are necessary to offset other underwriting factors
Growing Your Business
From valuable training and networking events to advanced tools and applications that help you work smarter, Freddie Mac has the resources you need to expand into new markets and grow your revenues.
DPA One is a free, online resource developed for housing professionals. DPA One is designed to help you quickly find, understand, and match down payment assistance (DPA) programs for borrowers who need financial assistance to purchase a home.
NEW! Area Median Income and Property Eligibility Tool
To help you determine whether a loan may be eligible for a credit fee cap, enter a property’s address to find out the AMI% for that location and whether your borrowers meet the AMI% requirements for certain Freddie Mac mortgage products.
Working with Housing Finance Agencies
Freddie Mac supports HFAs’ important work by providing liquidity, boosting awareness, implementing targeted affordable housing initiatives, and offering dedicated support to HFAs and their business partners.
HFA Advantage® Mortgage Flyer
Overview of the HFA Advantage mortgage and its benefits for lenders and borrowers.
Housing Professional Resource Center
Working with trusted partners in the housing ecosystem to help consumers navigate the complexities of today's environment.
News and Insights
Get the latest news and insights to keep on top of industry trends, Freddie Mac expert perspectives and affordable lending updates.
Freddie Mac Affordable Seconds® is designed to help meet the needs of borrowers who require flexible secondary financing options to increase their homeownership opportunities.
Resources for Borrowers
Reaching and educating borrowers – and helping them find the right mortgage – is essential for your business. Freddie Mac provides an array of materials you can share with your clients and business prospects.
CreditSmart® - Freddie Mac Single-Family
CreditSmart® is a suite of educational resources designed to empower consumers with the skills and knowledge to assist them through every stage of their financial capability and homeownership journey.