Freddie Mac HFA Advantage®
The Freddie Mac HFA Advantage Program® offers an insured conventional mortgage loan secured by a first mortgage with the options of down payment and closing cost assistance.
Down Payment Assistance - If you qualify for the Freddie Mac HFA Advantage® Program, you can also apply for down payment assistance in the form of a HFA Advantage Plus second loan to help with your down payment and/or closing costs. There are two options for down payment assistance.
HFA Advantage Plus- Deferred Option (No Payments) - THDA will provide $6,000 in the form of a forgivable second mortgage loan on your home. The loan has a 0% interest rate and the payments are deferred until the end of the 30 year term, at that time the loan is forgiven. The loan will be due in full at the time the home is refinanced or sold.
HFA Advantage Plus- Amortizing Option (Payment) - THDA will provide 6% of the sales price in the form of a second mortgage loan on your home, that is paid in monthly payments over 30 years at an interest rate that is the same as the first mortgage rate. The loan may also be used to pay closing costs.
Highlights for HFA Advantage and HFA Advantage Plus
- No first time homebuyer requirement
- Flexibility for loan qualification for borrowers with student loan debt
- Income limits apply differently for the HFA Advantage than Great Choice
- Qualifying income of the borrower(s) on the loan is used instead of household income limits
- Lender compensation up to 2.75%
- Since this is not a bond loan, there are not any pre-closing disclosures needed, such as affidavits.
- Become an Approved Freddie Mac HFA Advantage Lender
- HFA Advantage Program Guidelines -See SECTION X of OA Guide
- Program Comparison Matrix: HFA Advantage vs Great Choice
- Qualifying Income Limits
- Working Agreement for MBS Loans
- Loan Quality Advisor Tool
- Loan Quality Advisor FAQ
- Loan Quality Advisor Risk Assessment
- THDA Exclusionary List
- Underwriting Submission Checklist-HFA Advantage
- Closed Loan Submission Checklist-HFA Advantage
- Form SSA89 Authorization to Release SSN
- THDA Exclusionary Certification Form
- Form 3295 Subordinate Amortizing Note-Payment
- Form 3295 Document Completion Instructions
- Form 3296 Subordinate Note- Deferred Payment
- Form 3296 Document Completion Instructions
- Form 3800.43 Tennessee Subordinate DOT
- Form 3800.43 Document Completion Instructions