How to Leverage HFAs to Grow Your Business

Housing Finance Agency (HFA) programs might not apply to many of your customers, but did you know you can leverage HFAs to capture leads you might ordinarily not?

That’s right! If you focus only on conventional low down payment loans, you could be missing out on an opportunity to capture more business using HFA loans. Key characteristics of many HFA loans – down payment assistance and reduced MI coverage (in some cases) – make it easier for you to help qualified borrowers save even more on their loan.

Learn more about HFAs and how you can leverage HFA loans to grow your business.

What Is an HFA?

Housing Finance Agencies are typically chartered authorities established to address the affordable housing needs of their states and communities.

Although they vary widely, most HFAs are independent agencies that operate under the direction of an appointed board of directors. They administer a wide range of affordable housing and community development programs to assist both first-time homebuyers and renters.

HFA mortgage products are usually originated by private lenders that are approved by their state and local HFA partners.

Who Do HFAs Serve?

HFAs work with policymakers and regulatory agencies to support underserved housing markets. These markets can include rural and lower-income markets.

We should also mention that every state has its own HFA. Even some cities and municipalities have their own agency. Each HFA is responsible for identifying the needs of the community to better develop and cater programs to those communities.

First-time homebuyers are also an HFA sweet spot.  HFAs offer a wide variety of mortgage products to assist first-time homebuyers such as down payment assistance programs.

HFAs partner with lenders and real estate agents to bring those products to market.

What Are Down Payment Assistance Programs?

Down payment assistance programs help qualified homebuyers cover part of their down payment or closing costs. DPAs are funded through grants, forgivable loans, or secondary financing.

And nearly 70% of all state HFAs have some sort of DPA, meaning there’s greater opportunity to help borrowers put less down on their home.

How Can I Better Leverage HFAs to Grow My Business?

If your business already partners with your state or local HFA, there are a few things you can start doing today to better leverage HFA loans.

Start out by forming a relationship with HFA representative. They’re friendly people and love to work with loan officers to help get the word out about HFA loans.

As you get to know your HFA representative, ask them about the different loan programs they offer. They’ll be able to help you understand which types of borrowers are eligible for those programs and how to identify them.

Another reason to have a better relationship with your HFA is because they tend to have ready-to-go marketing materials you can leverage in your marketing plan. Your HFA will likely partner with you to co-brand marketing materials, too.

Once you feel comfortable with your HFA-specific knowledge, start spreading the word! Incorporate messaging about affordable housing programs and down payment assistance programs into your marketing messages to let potential borrowers know the value you can offer them via an HFA loan.

As we mentioned before, HFA programs tend to be a sweet spot for first-time homebuyers, a market segment that continues to grow. Getting your messages in front of them can lead to more leads contacting you.

Where Can I Get More Information About HFAs?

Your state or municipality HFA’s website will be the best place to get information about program-specific details. Follow this link to find your state’s HFA page.

You can also get more information about HFAs on our website, including guideline-specific information for HFA loans.

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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 for some loans, HFA loans make sustainable homeownership more realistic for more people.

By bolstering your HFA knowledge, you can help more people access these programs and grow your business.

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