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Information for Single-Family Lending and Real Estate Professionals
Program Announcement
July 2, 2019
Changes to Fannie Mae’s HFA Preferred for DU Casefile ID’s with First Submission Date of September 5, 2019 or later for the Home Advantage and House Key programs
Fannie Mae informed the Washington State Housing Finance Commission of upcoming changes to the pricing benefit for HFA Preferred loans. Please see Fannie Mae HFA Program Changes Matrix.
NOTE: WSHFC’s FNMA HFA Preferred Loan Programs are not changing until September 5, 2019
What is changing?
Beginning September 5, 2019 FNMA will limit the HFA Preferred pricing benefit (LLPA waiver and charter minimum MI requirement of 18%) to loans with incomes at or below 80% AMI.
What does this mean for you?
Borrowers with incomes at or below 80% AMI will continue to receive all current benefits of HFA Preferred pricing, including:
97% LTV – 105% CLTV
Charter Level MI Coverage – 18%
No loan level pricing adjustments
Manufactured homes still allowed
Non- occupying co-borrower and co-signers still allowed
Borrowers with incomes greater than 80% AMI, up to the Home Advantage program income limit of $145,000 and House Key Opportunity county by county income limits, will be deliverable under the following terms:
97% LTV – 105% CLTV
Standard MI Coverage – 35%
Higher interest rates – We expect interest rates to be approximately .50% - .75% higher compared to borrowers below 80% AMI.
Manufactured homes still allowed
Non- occupying co-borrower and co-signers still allowed
Timing and Implementation
The changes will be effective for new DU Casefile ID’s with First Submission Date of September 5, 2019 or later. Our pricing will change on Lender Online on September 5, 2019 in accordance with Fannie Mae’s announcement. However, we may manually lower or raise rates upon receipt of your DU Case Number.
What about Freddie Mac HFA Advantage?
As of the date of this announcement, Freddie Mac has not made the same change. Freddie Mac indicated to us they will eventually follow Fannie Mae’s model or some variation thereof, but the timeframe is unknown. What this means is you can deliver FHLMC HFA Advantage loans with LPA Findings as follows:
97% LTV – 105% TLTV
Charter Level MI Coverage – 18%
No pricing adjustment up to $145,000
No manufactured homes
No non- occupying co-borrower and co-signers allowed
If you have additional questions, please email Lisa.DeBrock@wshfc.org