Freddie Mac issued Bulletin 2024-H (Bulletin) extending the $2,500 Home Possible Very-Low Income Purchase (VLIP) mortgages credit for one additional year and adding a new underwriting requirement that at least 1 borrower on the loan to be a first-time homebuyer. Per Bulletin 2024-A, the following underwriting requirements must also be met for the borrower to receive the $2,500 VLIP credit:
- The loan must be an eligible Home Possible purchase loan (underwritten in Loan Product Advisor or manually underwritten);
- 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; and
- The full amount of the Home Possible VLIP mortgages credit must be applied to the borrower’s down payment and/or closing costs.
These changes are effective for mortgages with settlement dates on or after March 1, 2025, and on or before February 28, 2026.
Click to view the Freddie Mac Guide Bulletin 2024-H: https://www.tenaco.com/wp-content/uploads/2024/12/Freddie-Mac-Guide-Bulletin-2024-H-12-12-24.pdf
