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Mandatory Update to Affordability Test

May 9, 2014

The U.S. Department of Housing and Urban Development (HUD) has updated area median family income thresholds for 2014. This change may affect the number or percentage of units in a property that meet the very low-income (VLI) or low-income (LI) eligibility parameters.

We have updated our Affordability Test to reflect the most recent data from HUD; however, no changes have been made to the model itself or calculation methodology.

Sellers must use the updated Affordability Test to determine affordable housing eligibility. Please note:

  • The results have no bearing on whether Freddie Mac will buy the loan.
  • The results are preliminary estimates of affordable housing units and final results will be determined solely by Freddie Mac.
  • Final results may be different from the preliminary estimates calculated by the test.
  • The test does not apply to senior housing properties with services, substitutions, forward commitments, and subordinate liens.

For more information, visit the Affordability Test and Resources page or contact your Freddie Mac Production representative.

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