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U.S. Bank partners with 40+ government agencies to originate and service HFA loans designed to address first-time homebuyer needs

Each year, state and local housing finance agencies work to strengthen their communities with homeownership opportunities via Housing Finance Agency (HFA) loans, which help pair credit-qualified borrowers with downpayment and closing cost assistance.

HFA loans can open the door to homebuying for first-time and low-to-moderate homebuyers. U.S. Bank partners with more than 40 state and local housing finance agencies to originate and service these loans, stretching geographically from Alaska to Florida.

“At U.S. Bank, we’ve had a long-standing commitment to increase access to sustainable homeownership,” said James Coreno, HFA division manager at U.S. Bank. “By partnering with state and local agencies, together we can help address the homeownership and housing issues affecting their state or local area.”

In some cases, an HFA loan is originated by other local lenders that work closely with the local housing agencies offering the loan product in partnership with Fannie Mae, Freddie Mac and Ginnie Mae.

Once a loan is closed, U.S. Bank can then purchase and begin servicing it. This creates an opportunity for U.S. Bank to help the homeowner with questions or support surrounding their mortgage for the life of the loan, Coreno said.

“When we service an HFA loan, we become a trusted advisor to that client, whether they need help with setting up automatic payments and counseling on managing the escrow accounts for paying taxes and insurance or general loan servicing advise,” he said.

For instance, in Ohio, U.S. Bank collaborates with the Ohio Housing Finance Agency. Just this year, U.S. Bank has assisted 3,500 new clients who became first-time homebuyers with loans facilitated through the Ohio agency.

“The Ohio Housing Finance Agency is proud to partner with U.S. Bank and lenders throughout the state to help Ohioans realize their dreams of homeownership,” said Shawn Smith, executive director of the Ohio Housing Finance Agency.

“Our programs, which provide discounted mortgage rates and down payment assistance, help those borrowers that may be looking for a home but hesitate because of the high interest rates and the need for a down payment,” Smith said. “Working with U.S. Bank, we’re helping Ohioans navigate the homebuying process so they can be successful homeowners.”

With inventory and affordability challenges in today’s housing market, state and local housing finance agencies can be a resource for education and ultimately, down payment assistance and sustainable homeownership, he said.