AHFA and Freddie Mac have teamed up to offer the Freddie Mac Home Possible Advantage conventional loan product to borrowers in Alabama.
The Home Possible Advantage product will replace the HFA preferred product on all Conventional Step Up Reservations made in AHFA’s Lender Online Portal beginning January 22, 2019.
One of the benefits to the Home Possible Advantage product is that borrowers may be eligible for a grant to help with closing costs, in addition to the down payment assistance mortgage currently offered through Step Up.
Borrowers with qualifying income at or below 50% of the Area Median Income (AMI) limits (as published by Freddie Mac) are eligible for an Affordable Income Subsidy (AIS) grant in the amount of $2,500. Borrowers with qualifying income between 50.01% - 80.00% of AMI limits are eligible for a grant of $,1500.
Additional Information and Qualifications:
- Home Possible Advantage conventional loans only
- For new or existing homes in Alabama
- Lenders must run LP Automated Underwriting with Eligible/Accept only findings. No DU permitted.
- Homebuyers must have a credit score of 620 or higher
- Debt to income ratio must be 45% or lower
- Homebuyers must complete a homeownership education course
- Must apply for loan through a participating lender
- No cash back to borrower permitted from AIS grant, except for borrower paid POC items and verified earnest money deposit
- No manual underwritten loans permitted
As with Step Up, this assistance can also be combined with a Mortgage Credit Certificate to make buying a home even more affordable.
In addition, Freddie Mac is hosting a training webinar for all lenders on January 24. Click
here
for details.
