Approximately 87% of counties will experience AMI increases, meaning more borrowers will be Home Possible eligible.

Loan Product Advisor and the Home Possible Income & Property Eligibility tool will be updated on July 12, 2020 with the new 2020 area median income (AMI) limits recently issued by the Federal Housing Finance Agency (FHFA). Approximately 87% of counties will experience AMI increases. This means more borrowers will qualify for Home Possible mortgages. The borrower’s annual qualifying income must not exceed 80% of AMI for the location of the mortgaged premises for the loan to be eligible. If the premises is located in a county where the AMI has declined and the loan was submitted to Loan Product Advisor before July 12, Loan Product Advisor will apply the higher 2019 AMI if the last submission of that loan prior to July 12 was an income-eligible Home Possible submission. This means the loan will remain eligible if there are no changes in the borrower’s circumstance and the property condition. In addition, if an eligible Home Possible loan is submitted prior to July 12 and the AMI for the mortgage premise increases, Loan Product Advisor will apply the higher 2020 limit in determining income eligibility.

Source: Freddie Mac

Note: As previously reported Fannie Mae has updated their systems for the new AMI limits.