FHFA First-Time Homebuyer Programs in 2026: What Is Active and How MLOs Can Use Them

FHFA oversees Fannie Mae and Freddie Mac and has directed both enterprises to maintain Equitable Housing Finance Plans that expand access for underserved borrowers. For MLOs, these plans translate into specific programs with favorable pricing, lower down payment requirements, and DPA layering options.

Active Fannie Mae Programs for First-Time Buyers

• ✦HomeReady: 3% down payment, income cap at 80% AMI (or no cap in low-income census tracts), reduced mortgage insurance premiums, homebuyer education required
• ✦HomeReady Community Seconds: allows a second lien for down payment from a government or nonprofit source, enabling near-zero cash-to-close
• ✦MH Advantage: manufactured housing program with 3% down and site-built pricing for homes meeting energy and design standards

Active Freddie Mac Programs for First-Time Buyers

• ✦Home Possible: 3% down payment, income cap at 80% AMI, reduced MI, available for 1-4 unit properties
• ✦Home Possible Advantage: 3% down on SFR only, similar income restrictions and reduced MI
• ✦BorrowSmart Access: provides closing cost credits for qualifying low-income first-time buyers; availability and amounts vary by cycle

Special Purpose Credit Programs

FHFA has encouraged lenders to develop Special Purpose Credit Programs under the Equal Credit Opportunity Act. SPCPs can offer below-market rates, reduced down payments, or direct down payment assistance targeted to a defined underserved group. Several large bank lenders have active SPCPs for specific geographies or demographics. MLOs should know which of their lending partners offer SPCPs and for which areas.

Homebuyer Education Requirements

HomeReady requires completion of the Framework homeownership course or an equivalent approved by Fannie. Home Possible requires Freddie Mac's CreditSmart course or an equivalent. Both require at least one first-time buyer on the loan to complete the education before closing. The education component is a real benefit for clients, not just a box to check; many borrowers come out better prepared and with fewer post-close issues.