Freddie Mac Announcement – Freddie Mac HFA Advantage® Program Update in Loan Product Advisor® – Dated December 01, 2017

[New MTP™ – FHA Financing – A Great Alternative to Assist More Buyers! AND NEW CHART – Fannie vs. Freddie HFA Comparison]

Rule Synopsis:

Spectacular new programs hitting the mortgage market that allow flexibility in down payment, closing costs and MI. Contact me for details!

Freddie Mac updated Loan Product Advisor (LPA) to support their HFA (Housing Finance Agency) Advantage Program when run through their automated underwriting system (LPA).

Interpretive Comments
You might be thinking, “what the heck is the Freddie Mac HFA Advantage?” It is a great program, so I suggest you become familiar with it if you are not already.

We all know what the Home Possible advantage program is (97% financing, lower cost MI). The HFA Advantage program is solely focused on partnering the Home Possible Advantage with a local or state-run Housing Finance Agency to create the HFA Advantage. A primary difference in the Home Possible Advantage is that the Housing Finance Agency sets the income limits for their program, not Freddie Mac.

What exactly did Freddie Mac change when running LPA? The update to LPA will fix your results so that you will no longer receive an “Ineligible” on the Loan Evaluation Summary page when you run this program through LPA. It will now show as Eligible.

I recommend that you do some digging around at this link for Freddie Mac’s HFA Advantage dedicated web page for more information. We attached that resource area below so that you can explore the program in detail. This is a book of business you may want to learn about so that you have additional options for borrowers who are in need of the benefits that come with a Housing Finance Agency program (like down payment assistance, improved rates, different MI options, different housing curriculum requirements and so on).

Loan Originator/Processor/Closer/Manager/Owner Interpretation

Look to see what wholesale relationships you have that will allow you to originate an HFA Advantage loan program. Note: The wholesaler must be an approved Freddie seller/servicer. Take time to look at the comparison documents for FHA vs. HFA Advantage on the web link I provided in the resources below.

Underwriter Interpretation

If you underwrite these, it will be nice to have LPA respond with an “Eligible” rating instead of an Ineligible rating.

Supporting Resource:

Lloyd Rutherford, Staff Writer

Copyright – 2017 –

Supporting Resources:


2017-12-28T12:13:44+00:00 December 28th, 2017|Freddie Mac|