The Mortgage Outlet's High Cost Area Purchase Program offers agency credits for interest rate buydowns.
This program helps moderate-income and 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).