First Time Homebuyer – Guide to LLPA Waivers
What is Duty to Serve?
• • •
We launched our first Duty to Serve plan in 2018 and updated the plan in 2021 to outline commitments for 2022-2024.
Duty to Serve Loan Eligibility
Under the Duty to Serve rule, m
Duty to Serve Requirements
For all Duty to Serve loans:
•
• •
Additional Requirements for Manufactured Housing (MH) Loans
Additional Requirements for Affordable Housing Preservation Loans
In addition to meeting the requirements for all Duty to Serve loans:
•
o
o
o Be a HomeStyle Energy loan which is projected to reduce energy or water consumption by at least 15% and
provide aggregate utility savings over the life of the improvement that exceed its cost.
In December 2016, the Federal Housing Finance Agency (FHFA) issued the Duty to Serve Underserved Markets rule, as
required by the Housing and Economic Recovery Act (HERA) of 2008. The Duty to Serve rule directs Fannie Mae to improve
access to mortgage financing for those of modest means in three housing markets posing persistent challenges—and
significant opportunities.
Manufactured housing – Exploring innovative financing options for one of the largest affordable housing
opportunities. This includes support for single- and multi-width MH lending, as well as MH Advantage®.
Affordable housing preservation – Helping keep established properties available as low-cost housing. This
includes support for energy efficiency and shared equity.
Rural housing – Supporting the financing of housing for targeted high-needs rural regions and populations. This
includes support for Native American populations and small financial institutions (SFIs), and other lending in rural
areas and persistent poverty regions.
ortgage loans supporting Duty to Serve must meet certain requirements beyond those in the
Selling Guide. In order to be considered an eligible Duty to Serve loan, the loan must meet requirements applicable to all Duty to
Serve mortgage loans and all other requirements specific to the type of mortgage loan being sold.
The total annual qualifying income must be ≤ 100% of the area median income (AMI) for the property’s
location. Lenders must refer to the AMIs that Fannie Mae uses in Desktop Underwriter® or our AMI lookup tool,
and may not rely on other published versions (such as AMIS posted on huduser.org).
The property must be an owner-occupied, principal residence.
The loan must be a purchase money transaction or a limited cash-out refinance transaction.
In addition to the requirements for all Duty to Serve loans, all MH loans must be secured by manufactured homes titled
as real property.
Energy efficiency loans must meet at least one of the following requirements:
Be a HomeStyle® Renovation or HomeStyle Energy loan which includes an ENERGY STAR® certified
• • •
We launched our first Duty to Serve plan in 2018 and updated the plan in 2021 to outline commitments for 2022-2024.
Duty to Serve Loan Eligibility
Under the Duty to Serve rule, m
Duty to Serve Requirements
For all Duty to Serve loans:
•
• •
Additional Requirements for Manufactured Housing (MH) Loans
Additional Requirements for Affordable Housing Preservation Loans
In addition to meeting the requirements for all Duty to Serve loans:
•
o
o
o Be a HomeStyle Energy loan which is projected to reduce energy or water consumption by at least 15% and
provide aggregate utility savings over the life of the improvement that exceed its cost.
In December 2016, the Federal Housing Finance Agency (FHFA) issued the Duty to Serve Underserved Markets rule, as
required by the Housing and Economic Recovery Act (HERA) of 2008. The Duty to Serve rule directs Fannie Mae to improve
access to mortgage financing for those of modest means in three housing markets posing persistent challenges—and
significant opportunities.
Manufactured housing – Exploring innovative financing options for one of the largest affordable housing
opportunities. This includes support for single- and multi-width MH lending, as well as MH Advantage®.
Affordable housing preservation – Helping keep established properties available as low-cost housing. This
includes support for energy efficiency and shared equity.
Rural housing – Supporting the financing of housing for targeted high-needs rural regions and populations. This
includes support for Native American populations and small financial institutions (SFIs), and other lending in rural
areas and persistent poverty regions.
ortgage loans supporting Duty to Serve must meet certain requirements beyond those in the
Selling Guide. In order to be considered an eligible Duty to Serve loan, the loan must meet requirements applicable to all Duty to
Serve mortgage loans and all other requirements specific to the type of mortgage loan being sold.
The total annual qualifying income must be ≤ 100% of the area median income (AMI) for the property’s
location. Lenders must refer to the AMIs that Fannie Mae uses in Desktop Underwriter® or our AMI lookup tool,
and may not rely on other published versions (such as AMIS posted on huduser.org).
The property must be an owner-occupied, principal residence.
The loan must be a purchase money transaction or a limited cash-out refinance transaction.
In addition to the requirements for all Duty to Serve loans, all MH loans must be secured by manufactured homes titled
as real property.
Energy efficiency loans must meet at least one of the following requirements:
Be a HomeStyle® Renovation or HomeStyle Energy loan which includes an ENERGY STAR® certified