Fannie Mae continues to focus on our mission of stabilizing neighborhoods, providing affordable housing, and placing owner occupant buyers in homes. Beginning December 1st, Fannie Mae will provide a 3% area median income (AMI) closing cost concession to qualified owner occupant buyers purchasing certain Fannie Mae owned properties. To qualify, the income of the buyer(s) must be at or below 100% of the AMI where the property being purchased is located. How does it work?
- To qualify, the gross income of the buyer(s) must not exceed 100% of the AMI of the property being purchased. Gross income is defined as the income that the borrower would state on the standard 1003 mortgage loan application if applying for a mortgage.
- Once a buyer selects a Fannie Mae owned property, the buyer must verify the AMI for the city/state of the property.
- Using the Fannie Mae AMI calculator, the buyer confirms if they are at or below 100% of the median income for the area.
- If the qualifying buyer(s)’ income does not exceed 100% the AMI, they must self-certify using the Self-Certification Form of Eligibility for AMI Closing Cost Concession.
- When making the offer, the buyer’s agent will request the 3% concession with the offer and upload the completed and signed Self-Certification to HomePath®.
We’re excited to share this closing cost assistance for qualified buyers. Contact us today to learn more.
*Source: Home Path by Fannie Mae