November 2022 Lender News from AHFA

FHLMC HFA Advantage Program Updates Announced

Effective on reservations accepted on or after November 4, 2022, AHFA is making the following changes to its Step Up Conventional Program (FHLMC HFA Advantage):

Minimum FICO of 640 for the 80% or below AMI Program and the >80% AMI Program
Borrowers regardless of income AMI bracket will be offered the same rate for the Step Up Conventional program

The mortgage insurance requirements for the Step Up FHLMC HFA Advantage program remain in place:

Area Median Income (AMI)

Loan to Value

Ratio

Mortgage Insurance

Coverage

Less than or equal to 80%

Greater than 95%

18%

Greater than 80%

Greater than 95%

35%

"This is good news for our lenders and realtors," said AHFA Single-Family Administrator Carrie Hamaker. "These program changes will eliminate upfront fees and allow more people to qualify and reach their homeownership goals."

To build an even better loan package this holiday season, the Step Up FHLMC HFA Advantage program can be combined with up to 1 percent of closing costs through an Affordable Income Subsidy Grant and dollar-for-dollar tax credits with a Mortgage Credit Certificate (MCC).

Award-Winning Lenders See HFA Advantage Benefits

Four of AHFA's participating lenders were recently recognized by FHLMC as top producers of Freddie Mac HFA Advantage loans for the Eastern region of the United States:

We asked these top producers how they know which homebuyers are a good fit for the Freddie Mac HFA Advantage loan program.

"I work with a lot of first-time homebuyers, and I try to use the HomePossible and the HFA Advantage program any chance I get. Lower down payment and lower PMI combined with new higher AMI makes a perfect product for most of my buyers. The first-time homebuyer online education is pretty helpful and quick to complete also."

-- KC Haririan, Union Home Mortgage

"The Freddie Mac HFA Advantage program is a great fit for a variety of buyers and situations. Even a buyer who has already saved a down payment could potentially benefit from this program if the circumstances are just right. With the cost of goods and services on the rise, many people will find that keeping extra money in their pocket when purchasing a home will provide them with an extra sense of security. I specifically find the Freddie Mac HFA Advantage program advantageous for a borrower with a stronger credit score and borrowers under a certain percentage of the Area Median Income limit. These two factors, while not dependent on each other, help to yield lower mortgage insurance premiums and additional grants that can be used toward closing costs and/or prepaids and help tip the loan to be more advantageous over the FHA version for many buyers."

-- Kelli Moore, Fairway Independent Mortgage

"As a mortgage loan professional, I listen to my client’s needs and wants. Many times, their need is having little to no money in their pockets. This is due to people not having the ability to save. In a few cases they have a little saved, but they want to hold onto their savings in case of an emergency. This is where the Freddie Mac HFA program comes in. With the first and second the buyer does not need a down payment and the seller can pay most and sometimes all of the closing cost. This allows the buyer to get into the home with little to no money out of their pockets. The buyers also have the option to pay the second mortgage off whenever they have a little extra money. Paying off the second mortgage lowers the payment, making the mortgage even more affordable."

-- Bill Robbins, PrimeLending

"I find that this product is a perfect fit for a buyer who has prepared in most areas to buy a home and all they need is a little help with down payment and/or closing cost assistance. The product offers down payment assistance and is easy to work through for buyers. I love this option and my borrowers have been very pleased with this product as well."

-- Marco Turner, Prosperity Home Mortgage

Let's Connect!

Are you plugged in to what AHFA is doing? Let's connect! We want to hear from lenders and Realtors across Alabama. We'd love to discuss your markets and find out what you see in your day-to-day operations that is affecting affordability for your hopeful home buyers.

AHFA also offers on-site training for your staff which covers borrower and property eligibility, processing, documentation, income calculations and more.

To schedule an informational visit or training session, simply email Alana Beaugez at abeaugez@ahfa.com.

Nov. 1: AHFA's Alana Beaugez (R) meets with Tracy Causey of AmeriFirst Financial and Blair Plunket and Todd Conn of Parkway Realty

Nov. 15: Mortgage Bankers Association of Alabama's "Helping People Become Homeowners" Roundtable

New Participating Lenders

AHFA is pleased to welcome Homestar Financial Corporation and SecurityNational Mortgage Company as participating lenders in the Step Up program.

Holiday Office Closings

The AHFA offices will be closed on the following dates in observance of holidays:

Thanksgiving: Thursday and Friday, November 24 & 25
Christmas: Friday and Monday, December 23 & 26

Alabama Housing Finance Authority | www.AHFA.com