Definition
State housing finance agencies (HFAs) in all 50 states develop and administer affordable housing programs. They offer below-market mortgages, down payment assistance, and tax credit programs. Many first-time buyers qualify for HFA programs with rates better than market.
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State housing finance agencies (HFAs) exist in all 50 states and operate mortgage and homeownership programs funded through tax-exempt bond issuances, federal grants, and program revenues. HFAs offer below-market mortgages, down payment assistance grants, and tax credit programs. Many first-time homebuyers qualify for HFA programs offering rates lower than market rates plus down payment help. HFAs often have income and price limits but serve a critical role in expanding homeownership access. HFAs typically partner with approved lenders who originate HFA-program mortgages.
Pro Tip
Contact your state's HFA before starting your home search; they offer programs competitive with or better than conventional financing.
Example
Your state's HFA offers first-time buyer mortgages at 4.0% with down payment grants up to $15,000 for borrowers within income limits.