Most large mortgage lenders treat community lending as a compliance checkbox — minimum CRA-mandated activity, processed reluctantly. LHFS built community lending into the core of the business. We are master servicer for eight state Housing Finance Agencies, administering their down-payment-assistance, first-time buyer, and affordable-housing programs.
As master servicer, we administer the loan portfolios for state Housing Finance Agencies — the public agencies that run down-payment-assistance, mortgage credit certificate, and affordable-housing programs in their states. Tap a state to focus.
State HFA partnerships shown for illustrative purposes. Exact program availability, income limits, and purchase-price caps update frequently — verify current details with your loan officer.
No. 02 · What community lending means in practice
Programs we actually run.
These six product lines make up the bulk of our community lending volume. Each has its own eligibility tests, income limits, and stacking rules. An LHFS LO can confirm what fits your situation in a single conversation.
01
Down-Payment Assistance (DPA)
Grants, forgivable loans, and deferred-payment seconds that help first-time buyers cover down payment and closing costs. Often $5K–$25K per file, sometimes more in high-cost markets. We administer DPA structures across each of our HFA partner states.
02
Mortgage Credit Certificates (MCC)
Federal tax credit programs that effectively reduce a buyer's mortgage cost by up to $2,000 per year for the life of the loan. Underutilized — most lenders don't bother explaining them. An LHFS LO can model the after-tax payment for you.
03
First-Time Buyer Bond Programs
Below-market rate mortgages funded by state HFA bond issuance. Available in many states for qualifying borrowers under income and purchase-price limits. Significant savings vs. market-rate financing, often combined with a DPA second.
04
CRA-Eligible Lending
Loans that count toward Community Reinvestment Act compliance for partner banks and credit unions. Real lending in low- and moderate-income census tracts, not statistical box-checking. We've built the infrastructure to source, underwrite, and service this volume responsibly.
05
LMI & Workforce Housing
Targeted financing for low- and moderate-income borrowers and essential workers (teachers, first responders, healthcare). Combined with HFA DPA, MCC, and program seconds where eligible. Designed around how these households actually qualify— not a generic conventional process.
06
Rural & USDA Outreach
USDA Section 502 Guaranteed lending in eligible rural areas, paired with state DPA where allowed. 0% down, fixed-rate, no PMI. A meaningful share of our community lending volume comes from rural counties most large lenders don't actively serve.
No. 03 · Why this is hard to copy
Three pillars that aren't a press release.
Plenty of lenders advertise “community lending.” Almost none of them actually run the master-servicing back-office for a state agency. Here is what we mean concretely.
→ Master Servicer
We run the back-office for state HFAs
Master servicing means the day-to-day administration of HFA-funded loan portfolios — payment processing, escrow, investor reporting, loss mitigation. State agencies originate program guidelines; LHFS keeps the loans performing. This is unglamorous work that has to be done correctly for the program to function.
→ LO Training
HFA programs require LO certification
Most state programs only allow HFA-trained loan officers to originate. LHFS LOs are certified across the eight HFA programs we serve, plus we run internal training so a teammate in one state can speak intelligently about adjacent state programs. If you're shopping a lender for an HFA loan, ask whether their LO is currently certified.
→ CRA Infrastructure
Real LMI lending, not box-checking
Banks and credit unions partner with LHFS to source CRA-qualifying volume in low- and moderate-income census tracts. This isn't a referral program — we underwrite, fund, and service the loans, then deliver them with full CRA documentation. That depth is uncommon among non-bank lenders.
A master servicer handles the day-to-day administration of mortgage loans on behalf of the loan owner — in this case, a state Housing Finance Agency. That covers payment collection, escrow, investor remittance, default servicing, and reporting back to the HFA. The HFA sets program rules and funds the loans; LHFS keeps them running cleanly.
No. Most state HFAs require the loan officer to complete program-specific training and stay current on guideline updates. LHFS LOs hold active certifications across the eight HFA programs we serve. If a lender claims to offer your state's DPA without an HFA-certified LO, the loan likely won't fund as advertised.
FHA is the underlying first mortgage on most HFA loans, but the HFA layer adds a down-payment-assistance second, an MCC tax credit, or a bond-rate first. That extra structure has its own income limits, purchase-price limits, occupancy rules, and recapture provisions. Stacking it correctly is what produces the actual affordability gain.
Yes. We work with banks and credit unions that need CRA-qualifying loan volume in low- and moderate-income census tracts. LHFS sources, underwrites, funds, and services the loans, then delivers full CRA documentation back to the partner. For institutions that want real LMI lending instead of statistical workarounds, this is a deliberate path.
Often, yes — depending on the state and program. FHA + DPA is the most common stack, but several HFAs allow DPA over conventional (HFA Preferred / HFA Advantage), VA, and in some cases USDA. The right combination depends on your income, credit, household size, and the home's location. An LHFS LO can run the actual numbers for your scenario.
Related · Where to go next
Keep reading.
If community lending is what brought you here, these adjacent pages are usually the next click.
NMLS #1796·Licensed in 50 states·Equal Housing Lender
Disclosures. All program references on this page are illustrative and subject to current state Housing Finance Agency guidelines, investor overlays, and federal program rules in effect on the date of application. Eligibility for down-payment-assistance, mortgage credit certificate, first-time buyer bond programs, and other affordable-housing initiatives depends on borrower income, household size, occupancy, credit profile, debt-to-income ratio, property type, purchase price, and the specific census tract or county in which the home is located.Master-servicer arrangements with state Housing Finance Agencies are subject to ongoing contract renewal; the eight HFA partnerships referenced are illustrative and may change. Mortgage Credit Certificate (MCC) tax benefits depend on the borrower's federal tax liability; the “up to $2,000 per year” figure is the federal program cap and not a guaranteed benefit. Down-payment-assistance amounts ($5K–$25K) are typical ranges across LHFS-administered HFA programs; actual amounts vary by program, county, and borrower qualification. CRA-eligible lending through LHFS is provided to qualifying borrowers in low- and moderate-income census tracts; eligibility is determined per loan and not guaranteed. USDA Section 502 Guaranteed loans require the property to be in a USDA-eligible rural area and the borrower to meet program income limits. Loan officer HFA certifications are state-specific; not every LHFS LO is certified in every HFA program. Land Home Financial Services, Inc. NMLS #1796.Equal Housing Lender. Licensed in 50 states.
