FHFA to Update Area Medium Income Limits

The Federal Housing Finance Agency (FHFA) recently announced they are updating the area medium income limits (AMI) which determine if a borrower’s qualifying income meets the eligibility requirements for certain Affordable Housing Loan Programs. This is important because as home prices have increased the limits to the income hamper borrowers’ ability to benefit from these loan programs. The general rule is that the borrower‘s annual qualifying income must be less than or equal to 80% of the AMI for the location of the subject property. This change is expected to become effective on June 5th. Great way to start off National Homeownership Month!!!