Area median incomes (AMIs) for Fannie Mae and Freddie Mac’s low-down-payment mortgage programs have changed recently – and that’s a good thing, according to United Wholesale Mortgage President and CEO Mat Ishbia.
Fannie’s HomeReady and Freddie’s Home Possible offer low down payment mortgages for low- to moderate-income borrowers. AMIs establish income eligibility standards for those programs. Freddie Mac’s AMI numbers changed on June 13. Fannie Mae will change its numbers Saturday. And those changes will open up the programs to more people, Ishbia said in a UWM video presentation.
“More borrowers will now fit into the Home Possible program and the HomeReady program with Freddie and Fannie,” he said. “It’s very positive – over 80% of all census tracts throughout America actually went up on Freddie Mac’s data.”
Ishbia added that borrowers could save a lot of money with these programs compared with an FHA
loan if they have a 680+ FICO score.
“Realize it’s a big opportunity for you to take a borrower on a Freddie Mac Home Possible or a Fannie Mae HomeReady program that you couldn’t just a couple weeks ago,” he said. “It’s a very positive thing and it will be this cheaper payment for the borrower than FHA in many, many situations.”
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