Fannie Mae issued an update to Lender Letter LL-2024-01 to extend the $2,500 loan-level price adjustment (LLPA) credit for one additional year and to add a new underwriting requirement that at least 1 borrower on the loan to be a first-time homebuyer. Per the original Lender Letter, the following underwriting requirements must also be met for the borrower to receive the $2,500 LLPA credit:
- The loan must be an eligible HomeReady purchase loan (underwritten in Desktop Underwriter or manually underwritten): and
- The borrowers must have total qualifying income less than or equal to 50% of the applicable area median income limit for the subject property’s location.
The $2,500 LLPA credit will be effective for whole loans purchased (“Purchase Ready” status in Loan Delivery) through February. 28, 2026 and for loans delivered into Mortgage-Backed Security (MBS) with issue dates through February. 1, 2026 (previously, February 28, 2025 and February 1, 2025, respectively). Fannie Mae will continue to accept deliveries of loans with this LLPA credit that do not include a first-time homebuyer for whole loans purchased (“Purchase Ready” status in Loan Delivery) through February 28, 2025 and for loans delivered into MBS with issue dates through February 1, 2025. After these dates, the LLPA credit will only be available on loans that include a first-time homebuyer.
Click to view the Fannie Mae Update to Lender Letter LL-2024-01: https://www.tenaco.com/wp-content/uploads/2024/12/Fannie-Mae-Update-to-Lender-Letter-LL-2024-01-12-5-24.pdf
