B-006 Home Possible – HomeReady Very Low-Income Purchase Grant
NOTICE TO BROKERS
Home Possible and HomeReady Guidelines with VLIP $2,500 Grant
Effective Tuesday April 9, 2024, FLCBank will offer to Very-Low-Income Purchase (VLIP) Borrowers, a $2,500 Credit Grant to be used towards the down payment and/or closing costs and pre-paid items of the purchase of a primary residence property when the borrower qualifies under Home Possible or HomeReady Loan Product.
In order for the Borrower(s) to qualify for the $2,500 Grant, the following requirements must be met:
- The Borrower’s qualifying income must not exceed 50% of the Area Median Income (AMI) for the location of the subject property.
- The AUS will determine if the Borrower is eligible for the grant with the following VLIP messages listed on the AUS results:
- For Home Possible – LPA Feedback Certificate: “Based on the annual qualifying income ($xx,xxx.xx) and the Area Median Income (AMI) ($xxx,xxx.xx) where the property is located, the loan meets the housing goal qualifications for a Very Low-Income Purchase (VLIP) since the income is at or below 50% AMI ($xx,xxx.xx). Additionally, the loan meets the Low-Income Purchase goal which requires income of less than or equal to 80% AMI ($xx,xxx.xx).
- For HomeReady – DU Findings Message: “This loan casefile may be eligible towards Fannie Mae’s Very Low-Income Purchase Goal. This goal includes owner-occupied, purchase, conventional mortgages where the total qualifying income is equal to or less than 50% of AMI where the property is located.”…