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The Changes Are Here: HomeOne Mortgage Available and Area Median Income Updates

July 26, 2018

Starting on July 29, you’ll be able to run Freddie Mac HomeOneSM mortgages through Loan Product Advisor®. This mortgage solution, which is available to qualified first-time homebuyers, offers a low down payment option of just three percent. Also, we’re updating the income limits for Home Possible® mortgages to increase the product’s focus on low- and moderate-income borrowers.

HomeOneSM Has You Covered

  • HomeOne is a conventional mortgage solution that offers a low three percent down payment option to reach a broader segment of the first-time homebuyer market, without geographic or income restrictions.
  • This mortgage solution allows a 97 percent loan-to-value ratio and a 105 percent total loan-to-value ratio (if the secondary financing is an Affordable Second), when at least one borrower is a first-time homebuyer.
  • To support informed homeownership, HomeOne has requirements for homebuyer education for purchase transactions, if all borrowers are first-time homebuyers.

Area Median Income Limits Implemented

  • Annual area median income (AMI) updates will be automated and available within Loan Product Advisor on July 29, 2018. The Freddie Mac Home Possible Income & Eligibility Tool will be updated as of that date to accurately reflect updated income requirements.
  • 2018 income limits will be capped at 100 percent AMI for properties in designated high-cost areas, designated disaster areas and minority census tracts.
  • There are no income limits for properties located in low-income census tracts, where the median income is at or below 80 percent AMI.

Reminder: To be eligible for existing 2017 Home Possible income limits, loans must be submitted through Loan Product Advisor as a Home Possible mortgage, and qualify for Home Possible income limits no later than July 28, 2018. Beginning July 29, all new submissions through Loan Product Advisor will be evaluated against the 2018 limits.

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