Wholesale Announcement

If the Mortgage is submitted as a Home Possible Mortgage on or after May 18, 2025

Then the following income limits are applied:

• The last submission before May 18, 2025, was also a Home Possible Mortgage, and
• The income limits were met

• The higher of the following income limits:
• 2024 Area Median Income limits at 80% of the Area Median Income
• OR
• 2025 Area Median Income limits at 80% of the Area Median Income

The higher of the following income limits:

• 2024 Area Median Income limits at 80% of the Area Median Income
• OR
• 2025 Area Median Income limits at 80% of the Area Median Income

2025 Area Median Income limits at 80% of the Area Median Income

Chapter 6

Loan Purposes

HB-1-3555 Section 6.2 (C)

Interested Party Concessions

Seller contributions (or other interested parties) are limited to six percent of the sales price and must represent an eligible loan purpose in accordance with this paragraph. Closing costs and/or prepaid items paid by the lender through premium pricing are not included in the seller contribution limitation. Funds provided by the seller for repairs are not included in the interested party contribution limitation.

Seller contributions (or other interested parties) are limited to six percent of the sales price and must represent an eligible loan purpose in accordance with this paragraph. Closings costs and/or prepaid items paid by the lender through premium pricing and funds provided by the seller for repairs or to pay the buyer’s real estate commission fees are not included in the interested party contribution limitation.

Chapter 6

Loan Purposes

HB-1-3555 Section 6.2(D), 2a

Non-Streamlined Refinance

The existing loan must have closed 12 months prior to the Agency’s receipt of a Conditional Commitment request and have a mortgage payment history which must not reflect a delinquency equal to or greater than 30 days within the previous 180-day period.

The existing loan must have closed 180 days prior to submission to the Agency and have a mortgage payment history which must not reflect a delinquency greater than 30 days within the previous 180-day period.

Chapter 6

Loan Purposes

HB-1-3555 Section 6.2(D), 2b

Streamlined Refinance

A new appraisal is not required to refinance an existing guaranteed loan. A direct loan borrower will be required to obtain a new appraisal if they have received payment subsidy to determine the amount of subsidy recapture due. If subsidy recapture is due, the amount cannot be included in the new refinance loan. Subsidy recapture must be paid with other funds or subordinated to the new guaranteed loan.

The existing loan must have closed 12 months prior to the Agency’s receipt of a Conditional Commitment request and have a mortgage payment history which must not reflect a delinquency equal to or greater than 30 days within the previous 180-day period.

A new appraisal is not required to refinance an existing guaranteed loan. A direct loan borrower will be required to obtain a new appraisal if they have received payment subsidy to determine the amount of subsidy recapture due. If subsidy recapture is due, the amount cannot be included in the new refinance loan. Subsidy recapture must be paid with other funds or subordinated to the new guaranteed loan. If an applicant elects to finance the subsidy recapture into the new refinance loan, refer to the non-streamlined refinance guidance.

The existing loan must have closed 180 days prior to submission to the Agency and have a mortgage payment history which must not reflect a delinquency greater than 30 days within the previous 180-day period.

Chapter 13

Special Property Types

HB-1-3555 Section 13.3 (D)

Title Policy for Leaseholds

Silent

The leasehold estate must constitute real property; be subject to the mortgage lien and be insured by a title insurance policy. Refer to the title insurance policy requirements outlined in Chapter 16 of this handbook.