HomeReady and Home Possible Income Limits
Newrez LLC "Newrez" Approved Correspondent Clients: please note the following changes listed below for the HomeReady and Home Possible income limits.
HomeReady and Home Possible Income Limit Change
Area Median Income Estimates (AMIs) are used in determining borrower eligibility for HomeReady and Home Possible mortgage loans.
On June 5, 2021, the 2021 HomeReady income limits were implemented in Desktop Underwriter (DU) and published on the Fannie Mae website: HomeReady Income Eligibility.
DU will apply the 2021 limits to new DU loan casefiles created on or after June 5, 2021.Loan casefiles created prior to June 5, 2021, will continue to use the 2020 limits.
On June 16, 2021, Loan Product Advisor (LPA) and the Home Possible Income & Property Eligibility tool will be updated with the new 2021 area median income (AMI) limits.
If the subject property is located in a county where the AMI has declined and the loan was submitted to LPA before June 16, 2021, LPA will apply the higher 2020 AMI if the last submission of that loan prior to June 16 was Home Possible income-eligible.
If a Home Possible loan is submitted to LPA prior to June 16, 2021 and the AMI for the property increases, LPA will apply the higher 2021 limit in determining income eligibility.