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For low- and middle-income homebuyers in the US, navigating the high-cost real estate market can be challenging. The core solution lies in understanding new federal initiatives. Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac are significantly expanding their "Duty to Serve" plan in 2026, specifically targeting three underserved, affordable housing sectors: rural properties, manufactured homes, and affordable rental units. Based on our experience assessment, these programs aim to incentivize private lenders by reducing their risk, thereby increasing mortgage accessibility for qualifying buyers in these markets.
The "Duty to Serve" plan is a regulatory program overseen by the Federal Housing Finance Agency (FHFA) that mandates Fannie Mae and Freddie Mac to facilitate a more robust mortgage market for underserved populations. As GSEs, Fannie and Freddie do not lend directly to consumers. Instead, they purchase mortgages from approved lenders, which provides those lenders with capital to issue new loans. By committing to purchase more loans in specific, high-need categories, they effectively reduce the risk for private lenders, encouraging them to originate mortgages they might otherwise avoid. This three-year initiative is graded annually by the FHFA to ensure the GSEs meet their commitments.
A key focus in 2026 is increasing mortgage access in rural America. According to recent U.S. Census Bureau data, over 23% of Americans live in rural areas, where median incomes are typically below the national average and access to traditional banking can be limited. The challenge has historically been that lower home prices and fewer transactions make these areas less profitable for lenders. Fannie Mae aims to purchase up to 5,000 additional new rural, single-family loans, while Freddie Mac will purchase roughly 3,360 more annually by the program's third year. This targeted investment is directed toward regions like middle Appalachia, Native American areas, and the Lower Mississippi Delta, which are in dire need of housing investment.
A manufactured home—a dwelling built entirely in a factory and transported to a site—is a critically important source of affordable housing. These homes cost a fraction of traditional site-built, or "stick-built," homes. To address financing challenges, which often include higher interest rates because these homes can be classified as personal property, the GSEs are intervening. Fannie Mae plans to purchase an additional 4,540 to 5,540 manufactured housing loans over three years, injecting over $500 million into this market. Freddie Mac will increase its purchases by up to 25%. This backing is expected to create more standardized and affordable loan products for buyers.
For those not ready to buy, preserving and expanding the affordable rental stock is another pillar of the 2026 plan. Fannie Mae and Freddie Mac are resuming significant investment in Low-Income Housing Tax Credits (LIHTC), which are tax incentives for developers to build affordable housing. These credits are a primary driver for the construction of approximately 100,000 affordable rental units annually nationwide. Furthermore, the GSEs will increase support for properties under the Section 8 housing voucher program and purchase loans for multifamily buildings (five or more units). The goal is to increase the supply of rental units, which, based on economic principles, can help moderate rising rental prices over time.
While the increase in loan purchases is a positive step, the overall impact on the national affordability crisis will take time to measure. The initiatives are designed to test market responses and encourage private lenders to follow the GSEs' lead. Prospective buyers in rural areas or those considering manufactured homes should inquire with lenders about programs affiliated with Fannie Mae and Freddie Mac. The success of the "Duty to Serve" plan will depend on its ability to demonstrate to the private sector that lending in these markets can be a viable and wise investment.
