7 HFA Mortgages
Not to be confused with FHA loans, HFA loans are issued in collaboration with state and municipal Housing Finance Authorities.
Many HFA loans are Fannie Mae and Freddie Mac-backed conventional mortgages. Many HFA programs permit the use of down payment aid to further minimize the out-of-pocket expense of purchasing a home, with some requiring as little as 3% down.
Mortgage rates and mortgage insurance premiums may be reduced for borrowers who are eligible for HFA loans. A credit score of 620 or above is normally required for approval. However, there is some degree of program specificity in the eligibility requirements.
Learn more about public housing financing in your state by contacting the relevant department or authority in your area. Please be advised that there may be additional time involved in closing the loan due to the additional approval requirements necessary for this type of lending program.