The Federal Housing Finance Agency (FHFA) recently issued updated area median income (AMI) limits for 2025, with most areas showing an increase over 2024. This means you may be able to offer affordable lending opportunities to more borrowers.

As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2025-A, the updated AMI limits will be effective May 18, 2025, and will be reflected in Loan Product Advisor® (LPA®) and in other eligibility tools including:

LPA uses AMI limits to assess whether a borrower’s area median income percent (AMI%) meets requirements for Freddie Mac’s Home Possible, Refi Possible and HFA Advantage® offerings, as well as certain Duty to Serve offerings. AMI limits are also used to assess whether a loan is eligible for credit fee caps and credits, if applicable, including mortgages made to first-time homebuyers, as described in Exhibit 19, Credit Fees, and Exhibit 19A, Credit Fee Cap Eligibility Criteria.

Certain Freddie Mac affordable offerings include AMI limits and are as follows:

  • Home Possible Eligibility: Income must be less than or equal to 80% of the AMI for the location of the mortgaged premises.
  • Refi Possible Eligibility: Income must be less than or equal to 100% of the AMI for the location of the mortgaged premises.
  • HFA Advantage Eligibility: Lenders that participate in an HFA program should consult the HFA’s website for income eligibility and associated pricing of their HFA Advantage offerings.

LPA will apply the new AMI limits for Home Possible loan submissions and resubmissions as follows:

  • If the mortgaged premises is in a county where the AMI has decreased and the loan was submitted before May 18, 2025, LPA will apply the higher 2024 AMI and the loan will remain eligible if there are no changes in the borrower’s circumstance or the property condition and the loan was previously eligible as a Home Possible mortgage.
  • If the mortgaged premises is in a county where the AMI has increased and the loan was submitted before May 18, 2025, LPA will apply the higher 2025 AMI in assessing eligibility for Home Possible mortgages.

For assessment of credit fee caps and credits, the AMI% is calculated in Loan Selling Advisor® and uses the following:

  • For Loan Product Advisor Mortgages, the higher AMI as of the Note Date or the AMI used in the last LPA submission
  • For Manually Underwritten Mortgages, the higher AMI as of the application received date or the note date

Additional Information

For More Information

  • Read Guide Bulletin 2025-A.
  • Contact your Freddie Mac representative or Customer Service (800-FREDDIE).
  • Log into Developer Portal and check out our growing catalog of APIs that can help your business throughout the loan production process.