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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

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:

  • The last submission before the effective date was also a Home Possible Mortgage, and
  • The income limits were met 

The better of the following income limits:

  • 2019 AMI limits at 80% of the AMI OR
  • 2018 AMI limits at 100% of the AMI or low income census tracts

For the following submissions:

  • The Mortgage is submitted for the first time
  • The Key Number cannot be identified, or
  • The last submission before the effective date was not submitted as Home Possible and/or did not meet the income eligibility limits 

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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