On Dec. 12, Freddie extended home possible very low income credits.
Freddie issued Bulletin 2024-H to extend very-low income purchase (VLIP) mortgages credit, updated eligibility to require at least one borrower to be first-time homebuyer.
The requirements of Bulletin 2024-A continue to apply for mortgages with settlement dates on or before Feb. 28, 2025, follows Feb. 2024 bulletin issuance, see #200287.
VLIP Eligibility
In addition to guide requirements, mortgage must be a Home Possible mortgage, a purchase transaction, and at least one borrower must be first-time homebuyer.
The borrower's qualifying income converted to an annual basis must not exceed 50% of area median income for the location of the mortgaged premises, using given tools.
Mortgage must be underwritten per Guide Section 4501.5, be a loan product advisor mortgage that receives a risk class of accept, or a manually underwritten mortgage.
Full amount of VLIP mortgages credit must be applied to downpayment/closing costs.
May also be used to offset the 3% contribution due from borrower funds if required, and includes mortgages underwritten using negotiated underwriting provisions.
Also included the delivery requirements for the sellers using ULDD data points.
Effectiveness
$2,500 VLIP mortgage credit has been extended and will be effective for mortgages with the settlement dates on or after Mar. 1, 2025, and on or before Feb. 28, 2026.
