Announcement: FNMA & HomeReady Product Guideline Updates

FNMA has recently made the following guideline changes to FNMA and HomeReady Products:

HomeReady Product:

• DU will be updated with the new 2020 Income Limits on June 20th.
• The below link can be utilized to determine if the borrower meets the Area Median Income Limits for this product
  • https://ami-lookup-tool.fanniemae.com/amilookuptool/
• NOTE: Homebuyers Counseling is required, if all occupying borrowers are first time homebuyers.  At least one borrower must go through counseling via Frameworks on all purchase transactions, regardless of LTV.

All FNMA Products

• FNMA no longer requires a copy of the lease on our subject property to ensure there are any provisions that could affect our first lien position
  • NOTE: Due to COVID-19, our temporary guidance requiring a copy of the active lease(s) will remain.  Once this temporary guidance is removed, we will no longer require a copy of the lease on the subject property unless required for income calculation purposes.
• FNMA no longer requires an impound account to be set up when non-deliquent real estate taxes are financed as part of a limited cash out refinance transaction
• Any property declared or filed as a horizontal property regime in accordance with local statues will be considered a condominium

Should you have any additional questions, please contact your Account Executive.