Aug 1, 2019 19-18
Clarification of Fannie Mae conventional HFA product changes
On July 23, MFA sent an email notification regarding pending changes to Fannie Mae’s HFA Preferred program. We want to clarify that government loan programs which include FHA, VA, USDA and HUD Section 184 are not affected and will continue to be available for reservation. All of MFA’s government programs -- including down payment assistance programs -- will remain available and intact. These are MFA’s FirstHome, FirstDown, NextHome and NextDown programs.
Fannie Mae is modifying their HFA Preferred program parameters for borrowers who are above 80% AMI. MFA is in the process of determining how to modify our programs so that they best serve both groups of borrowers: those below 80% AMI and those above 80% AMI.
The FirstHome and NextHome conventional (HFA Preferred) programs will be off-line temporarily beginning August 19 while we develop the new conventional loan structure. These programs could be offline for several weeks to months due to the complexity and all the parties involved in revising the programs. Our intent is to restore these programs as soon as possible.
What this means:
- FHA, VA, USDA and HUD Section 184 loans are not impacted and will continue to be available for reservation.
- You may reserve HFA Preferred loans under the current rules through the close of business (5 p.m. MDT) Friday, August 16.
- As of Monday, August 19, you will not see a conventional loan option in our system. Again, this will be temporary.
- We will keep you updated on our progress and provide details on the restructured conventional loan program.
Please do not hesitate to call our office if you have any questions: 505.843.6880