The Federal Housing Finance Agency (FHFA) has finalized new housing goals for Fannie Mae and Freddie Mac for 2025 to 2027, aimed at increasing access to affordable homeownership and rental housing.

These goals are designed to support the housing needs of low-income and underserved communities, reflecting Fannie and Freddie’s objective to promote affordable housing, especially in light of ongoing housing affordability challenges across the country. The housing goals are generally set by the FHFA every three years; this set was first proposed by the FHFA in August.

For single-family home purchases, the FHFA is targeting a 25% share of the purchase loans bought by the government-sponsored enterprises (GSEs) going toward borrowers in the low-income category, defined as those with a median income less than or equal to 80% of area median income. That’s down from 28% in the GSEs’ current housing goals.

Six percent is slated for very low-income borrowers (with a median income less than or equal to 50% of area median income), down from 7% now. The proposed low-income refinance goal is unchanged from the current goals at 26%, along with the purchase subgoal for low-income census tracts at 4%. The purchase subgoal for minority census tracts has been increased to 12% from the current 10%.

“The affordable housing goals better enable the Enterprises to effectively advance their missions and support housing finance markets in a safe and sound manner,” said FHFA Director Sandra L. Thompson. “It is critical that the Enterprises meet these goals, as required by law and regulation.”

The new benchmarks are scheduled to go into effect on Feb. 27, or 60 days following the final rule’s publication in the Federal Register.