HomeReady® and HomePossible® Changes
Did you know that FannieMae and FreddieMac are making changes to the Borrower income and 2019 AMI limits for HomeReady® and HomePossible®?
FreddieMac
As announced in 2019-15, FHLMC has updated the Borrower’s qualifying income, converted to an annual basis, to not exceed 80% of the AMI for the location of the Mortgaged Premises. This change includes properties in low-income census tracts. See HomePossible Income and Property Eligibility Tool for eligibility.
2019 AMI Limits
LPA will apply the updated Borrower income limits and the 2019 AMI limits as follows:
LPA Determination of Home Possible Eligibility |
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IF the Mortgage is submitted as a Home Possible Mortgage on and after July 28, 2019 and… |
THEN the following income limits are applied… |
For the following resubmissions:
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The better of the following income limits:
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For the following submissions:
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2019 AMI limits at 80% of the AMI |
FannieMae
As announced in Lender Letter 2019-06, FNMA is changing the income limit requirements for all HomeReady loans to not exceed 80% AMI for the property’s location. (This includes properties in low-income census tracts.)
Effective Dates:
- All of the above changes will apply to new loan casefiles submitted to DU the weekend of July 20, 2019.
- The 2019 HomeReady income limits will also be implemented in DU and in the HomeReady Income Eligibility Lookup Tool at the same time.
- The new limits and the 80% AMI change will apply to manually underwritten loans with application dates on or after July 20, 2019. (Fairway does not accept manual underwrites on conventional financing)
- On July 3, 2019 the Selling Guide will be updated to reflect the HomeReady 80% AMI limit.
See Wholesale Underwriting Guides (AUS & Underwriting then Manual Underwriting) for more details.
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