Employer-Assisted Housing (EAH)

What is it?
Employer-Assisted Housing (EAH) is a program offered by employers, not lenders, to provide affordable housing opportunities to their employees.

How does it work?
The most common EAH benefits are grants, forgivable loans, deferred or repayable loans, matched savings, interest rate buy-downs, shared appreciation, and home buyer education specials. An EAH plan can be easily customized to meet the unique needs and circumstances of an employer's overall recruitment, retention, benefits, and community strategies. Fannie Mae has provided free assistance to several hundred employers throughout the country who now offer EAH benefits to their employees.

Who does it help? 
EAH programs assist employees with housing benefits as part of their terms of employment.  It also is a way for companies to attract and retain employees to maintain their business operations.

What are some of the important features of the EAH mortgage programs?

• Employees who receive an EAH benefit generally get help with at least one of the three primary obstacles to homeownership: down payment, closing costs, and information about completing the home-buying process. Employers generally provide funds to the employee, which are used for a portion of the down payment, closing costs, or a permanent interest rate buy-down on the employee's first mortgage.
• The costs of providing and administering EAH plans are minimized or offset by the savings accrued from reductions in turnover, recruitment/relocation and training budgets, and from higher productivity and morale. Administration costs of EAH plans differ according to plan specifics, but for an average company of 4,000 employees, plan administration for a forgivable loan requires one-half of one employee's time.

Where can I find more information?

Fannie Mae's Regional Offices can help employers create an EAH benefit by identifying lender and community partners, providing a cost benefit analysis using EAH software, technical assistance, customer service, and marketing support. Contact Fannie Mae at 1-800-7FANNIE (1-800-732-6643) to request an Employer Assisted Housing Information Kit, which will be useful if you are an employer interested in developing an EAH program, or an employee who wants to make the information available to your management.

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