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Information for Single-Family Lending and Real Estate Professionals
Program Announcement
March 10, 2020
Specialty Downpayment Assistance Programs
Dear Lending Partners:
Please Note: The below guidelines do not apply to Freddie Mac's HFA Advantage or FHA, VA & USDA loans.
With the low interest rate environment, some of our specialty downpayment assistance programs are not eligible to be used with Fannie Mae's HFA Preferred product due to Fannie Mae's current Community Second program guidelines for deferred payment loans, as the interest rate of the second mortgage must be no more than 75% of the rate of the first mortgage.
Please check the first mortgage rate carefully if you are using a Home Advantage or House Key with Fannie Mae's HFA Preferred first mortgage. The following programs may not be eligible to be used with HFA Preferred:
ARCH-East King County DPA
Bellingham (Unrestricted) DPA
Pierce County DPA
Tacoma DPA
Seattle DPA
Example:
The interest rate on the Fannie Mae 1st mortgage is 4.00% times 0.75=3.00%. Hence, any deferred-payment second mortgage could not have an interest rate greater than 3.00%.
Questions: Email Corinna.Obar@wshfc.org