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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →The Mortgage Partnership Finance (MPF) Program helps participating Federal Home Loan Bank member institutions sell eligible mortgages into the secondary market, supporting their liquidity and capacity to serve local borrowers. In 2026, MPF expanded eligibility under its Traditional products to include additional affordable lending, manufactured-home, renovation and lender-funded assistance loans. Those changes give participating lenders more options; they do not guarantee that a particular borrower or property qualifies.
How does MPF help community lenders?
MPF is a secondary-market financing channel for participating financial institutions that are members of Federal Home Loan Banks. A participating institution originates a mortgage, confirms that it meets the applicable MPF product and delivery requirements, and sells it through MPF to its Federal Home Loan Bank. That access to the secondary market can provide liquidity while allowing the institution to continue working with borrowers. MPF is not presented as a direct-to-consumer mortgage lender.
Products differ in how they allocate risks. For example, MPF says that under MPF Original the Federal Home Loan Bank manages liquidity, interest-rate and prepayment risks, while the lender manages credit risk. That description applies to MPF Original and should not be assumed to describe every MPF product. The MPF Program Guide and product-specific selling guides set out institutional eligibility, contractual, delivery and quality-control requirements, which may be revised.
What changed in MPF Traditional eligibility in 2026?
MPF announced expanded Traditional product guidelines on September 18, 2026; the expanded eligibility took effect April 27, 2026. The changes cover additional categories of loans, subject to the program’s requirements:
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- Qualifying low-income borrower programs: MPF says eligible loans may have loan-to-value ratios up to 97%. This is a program allowance, not a promise that a lender will offer a 97% LTV mortgage to every borrower.
- Manufactured housing: Eligible financing includes single-width homes with 30-year terms. Flexible down-payment sources may include land-in-lieu and gift funds, and secondary financing options are available under program requirements.
- Home improvement and renovation: The property must be appraised based on its as-completed value, and renovation work must be finished before the loan is sold through MPF.
- Lender-funded affordable housing assistance: Qualifying lender-funded programs for low-income borrowers and neighborhoods are included. MPF distinguishes these programs from the Federal Home Loan Banks’ Affordable Housing Program; they are not the same assistance channel.
MPF’s conventional and conforming page identifies approved HomeReady, Home Possible, MH Advantage and CHOICEHome loans among the expanded eligibility. A loan’s association with one of those programs alone does not establish MPF eligibility; applicable product and loan-level rules still apply. See MPF’s conventional and conforming product information for current requirements.
Which other mortgage pathways does MPF describe?
MPF’s homeownership overview also describes routes for government-backed loans and a specific conventional initiative. They have distinct borrower, property and program rules, so they should not be treated as interchangeable:
| Pathway | What MPF identifies | Important distinction |
|---|---|---|
| FHA | FHA loans through MPF | Borrower and property eligibility follow the applicable FHA and MPF requirements. |
| VA | VA loans through MPF | Eligibility follows the applicable VA and MPF requirements. |
| Rural Housing Service Section 502 | Section 502 loans through MPF | Eligibility follows the applicable program and MPF requirements. |
| HUD Section 184 | Section 184 loans through MPF | Eligibility follows the applicable program and MPF requirements. |
| Native American Conventional Lending Initiative | Eligible loans may be delivered through MPF Xtra | For properties on tribal trust lands, subject to applicable Fannie Mae criteria and tribal agreements. |
For details, consult MPF’s homeownership overview and the relevant agency or initiative materials. The availability of a channel through MPF does not mean its requirements are the same as those for another pathway.
What should a borrower ask a participating lender?
MPF’s expanded categories can widen the set of loans a participating institution may be able to sell through the program. Whether that translates into an option for an individual borrower depends on the lender’s participation and the applicable loan and property rules. Useful questions include:
- Does the institution participate in MPF and offer the relevant product?
- Does the loan meet the current MPF requirements for the product and loan category?
- For renovation financing, will the appraisal use the home’s as-completed value, and can the work be completed before the lender sells the loan through MPF?
- For manufactured-home financing, which home types, down-payment sources and secondary financing arrangements are acceptable?
- For lender-funded assistance, what are the specific program terms, and is the assistance separate from the Federal Home Loan Banks’ Affordable Housing Program?
How large is the MPF network?
MPF’s homepage reports that in 2025 the program had over 700 participants, had purchased over 2 million mortgage loans, and had paid members more than $1 billion in credit enhancement income for strong loan performance. These are figures reported by MPF, not independently audited statistics presented here.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why did MPF expand the guidelines?
MPF’s September 18, 2026 announcement quotes Thomas Hazlett, Senior Vice President of Mortgage Lending at New Market Bank, saying, “The MPF Program listened to its members and acted on their feedback.” Hazlett also said, “These expanded guidelines provide the flexibility member institutions need to serve underserved borrowers in their communities and support affordable homeownership.” The comments reflect the participating lender’s perspective on the changes.
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