As housing costs continue to rise, so does the need for affordable mortgage financing. Thankfully, affordable options are expanding to keep up with the diverse needs of first-time and repeat buyers. In fact, you probably hear more about low down payment mortgages today than ever before because there are so many to consider. The HFA Preferred™ mortgage is one of them.

How Does HFA Preferred Work?

HFA Preferred is a conventional loan available to eligible first-time or seasoned homebuyers with low to moderate incomes. It's different from some mortgage options because you work directly with your local housing finance agency (HFA) or an approved lender within their network to be considered. If you qualify for this special financing, the HFA or lender will guide you throughout the loan underwriting process until you complete the purchase of your home. You may even qualify for down payment assistance through the HFA. That's just one of the perks of working with an agency that specializes in making home costs more affordable.

What Are the Benefits?

An HFA Preferred mortgage offers:

• A down payment as low as 3%
• Down payment assistance (Available through many HFAs)
• No first-time homebuyer requirement (You could be eligible even if you've purchased homes in the past.)
• Low monthly mortgage insurance (Fees tend to be lower than government-insured mortgages.)
• Cancellable mortgage insurance (Unlike government-insured loans, you may have the option to cancel your mortgage insurance once your home equity reaches 20%, which means lower monthly payments down the road.)

Equally important, when you work with your local HFA they can determine if you qualify for other types of assistance like money for a down payment or closing costs to help in your homebuying journey. If you need additional help, be sure to ask about the options that are best for you.