HFA Loans, Down Payment Assistance Programs

HFA Loans: A Partnership in Affordable Lending

Housing Finance Agencies across the country help open doors to affordable housing. With low interest rate mortgages, down payment and closing cost assistance programs, and reduced cost mortgage insurance coverage, HFA loans make sustainable homeownership more realistic for more people.

Genworth’s Partnership with HFAs

Genworth Mortgage Insurance leads the industry in providing private mortgage insurance coverage on state HFA loan programs. That’s because Genworth is committed to reinvesting in the community and has the experience to do it effectively.

Genworth’s tenured, cross-functional team of HFA experts is dedicated to supporting the needs of HFAs across the country. And for the people buying homes, our Homebuyer Education program helps prepare them on how to successfully realize their dream of homeownership. Ultimately, that experience pays off for lenders who are originating HFA loans by making the process of insuring a loan easier.

HFA Loans: Truly Affordable

Maybe you’re wondering what makes HFA loans so great. There are, after all, other programs from Fannie Mae® and Freddie Mac® plus the FHA to meet the needs of low-income families.

While there are several affordable lending options out there, you might find an HFA loan better suits your borrowers’ needs. Let’s look at an example.

FHA HFA Loans Comparison Table

*Note this comparison is based on $200,000 loan amount, 97% LTV, 18% coverage, fixed-rate mortgage, and 760+ and 740-759 credit score borrower.

As you can see, the total monthly payments for HFA Preferred or HFA Advantage paired with Genworth can save borrowers between $14.47 and $54.14 per month when compared with an FHA loan. That difference adds up over the period of five years where a borrower could save between $868.20 and $3,368.40.

When you put it into terms like that, borrowers can better understand how truly affordable HFA loans are.

HFA loans with private mortgage insurance also have the potential benefit of having the MI cancel after a borrower has 20% equity in their home, a considerable advantage over an FHA loan with MI that never cancels.

You can see how your state’s HFA rates compare by running a rate quote.

What California’s Doing

Housing Finance Agencies can be found in every state, and in California, for example, the California Housing Finance Agency (CalHFA) has been helping low-to-moderate income families purchase affordable housing since 1975.

CalHFA is a completely self-supporting state agency, and its revenues are generated in partnership with private capital instead of tax dollars. In fact, in the 2017-18 Fiscal Year, CalHFA helped finance over $2 billion in first mortgages which equated to over 7,400 first-time homebuyers purchasing a home. This was a record-setting dollar amount for CalHFA, even in the face of California’s continuously increasing home prices.

Genworth MI is proud to partner with CalHFA to offer affordable housing opportunities for homeowners in the state of California.

Thanks to Housing Finance Agencies across the country, thousands of families have been able to afford a home and thousands more will do so in the future. For the housing industry, for taxpayers, and for families, HFAs work.

Let’s help someone buy a house today.

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