The Mortgage Outlet's High Cost Area Purchase Program offers agency credits for interest rate buydowns.
This program helps first time homebuyers by expanding access to affordable, sustainable homeownership in high cost areas.
About This Program
To promote sustainable and equitable access to affordable housing, the Federal Housing Finance Agency (FHFA) announced targeted changes to Government-Sponsored Enterprises’ (GSEs’) purchase mortgage pricing on October 24, 2022, eliminating loan-level price adjustments (LLPAs) for certain borrowers and affordable mortgage products.
Lender Letter LL-2022-05, originally published on November 5, 2022, outlines the implementation of FHFA-directed changes to GSEs’ loan-level price adjustments (LLPAs) through the launch of four new programs, including the High Cost Area Purchase Program.
Program Requirements
Standard conventional underwriting guidelines apply, along with the following two additional requirements.
First Time Homebuyer
At least one borrower with no homeownership in the past 3 years.
Income Limit
Total qualifying income must be at or be 120% of the Area Median Income (AMI).
California Has the Most High Cost Areas and Highest Area Median Income Limits
Santa Clara
San Francisco
Oakland
Fremont
Hayward
Sunnyvale
Santa Clara
Concord
Berkeley
Santa Clara
San Francisco
Oakland
Fremont
Hayward
Sunnyvale
Santa Clara
Concord
Berkeley
Los Angeles
Long Beach
Santa Clarita
Glendale
Lancaster
Palmdale
Pomona
Torrance
Pasadena
Los Angeles
Long Beach
Santa Clarita
Glendale
Lancaster
Palmdale
Pomona
Torrance
Pasadena
San Diego
Chula Vista
Oceanside
Escondido
Carlsbad
El Cajon
Richmond
Antioch
Downey
San Diego
Chula Vista
Oceanside
Escondido
Carlsbad
El Cajon
Richmond
Antioch
Downey
You've got questions, We've Got answers
Where do the Agency Credits come from?
The Agency Credits come from Government-Sponsored Enterprises (GSEs) Fannie Mae or Freddie Mac, whichever one provides better mortgage terms.
Are The Agency Credits Taxable?
No, the Agency Credits are not taxable. The Agency Credits are not a grant.
Do The Agency Credits Have To Be Paid Back?
No, the Agency Credits do not have to be paid back. The Agency Credits are not a loan.
Is a Homeownership Education Course Required?
No, Homeownership Education Course is not a requirement of the High Cost Area Purchase Program.
How Long Does It Take To Close?
The High Cost Area Purchase Program can close in as few as 10 days.