2026 Area Median Income (AMI) Updates
FHFA has released the 2026 AMI limits. Both Fannie Mae and Freddie Mac apply them effective June 13, 2026, and most areas increased over 2025 — so more of your borrowers may qualify for affordable programs. AMI sets eligibility and certain pricing benefits for HomeReady, RefiNow, Duty to Serve, and Home Possible loans.
When it takes effect
Fannie Mae loads the 2026 AMIs into DU, Loan Delivery, and the AMI Lookup Tool on or before June 12, with an effective date of June 13, 2026. Freddie Mac applies them in LPA on the same date. The AMI used depends on when the loan enters the system, not the closing date:
| System / use | Which AMI applies |
| Fannie Mae — DU eligibility | By DU casefile creation date: casefiles created on/after June 13 use 2026 AMIs; those created before June 13 keep 2025 AMIs. |
| Fannie Mae — LLPA waiver | By Application Received Date (Loan Delivery Sort ID 224): before June 13 uses 2025 AMIs; on/after June 13 uses 2026 AMIs. |
| Freddie Mac — Home Possible (LPA) | On submissions/resubmissions before June 13, LPA applies the higher of the 2025 or 2026 AMI for the county — keeping eligible loans eligible. |
Key points to know
- Manually underwritten loans: use the 2026 AMI limit for application dates on or after June 13.
- HomeReady files in the pipeline (DU casefile created before June 13): DU uses the 2025 AMI by casefile creation date for eligibility; application-date AMI is not used to apply the waiver at sale.
- First-time homebuyer & Duty to Serve waivers: DU keeps issuing an Observation message when a casefile is waiver-eligible by AMI. For application dates after June 13, confirm waiver eligibility against 2026 limits.
- Freddie credit-fee caps & credits: AMI% is set in Loan Selling Advisor using the higher AMI as of the note date or the last LPA submission (manual loans: higher of application-received date or note date).
- Verify in the official tools. AMI data in the agency systems may differ from HUD’s published estimates.
Programs affected
AMI, in one line: it’s the midpoint income for an area; eligibility is measured as a borrower’s income vs. that figure. Income at or below the limit can unlock the program or better pricing.
| Program | AMI limit | Who it helps |
| HomeReady Fannie Mae | ≤ 80% AMI | Low-down-payment (3%) purchase/refi for low-to-moderate-income buyers. |
| Home Possible Freddie Mac | ≤ 80% AMI | Freddie’s 3%-down option for very-low- to moderate-income borrowers. |
| RefiNow Fannie Mae | ≤ 100% AMI | Payment-reducing refinance for existing lower-income homeowners. |
| Duty to Serve & LLPA waiver Both GSEs | ≤ 80% AMI* | Mission-lending and pricing relief: eligible loans may get waived or capped LLPAs / credit fees (*per the applicable program criteria). |
What this means for you
- Run 2026 eligibility on or after June 13 for new registrations and locks; the agency tools and AUS reflect the new limits automatically that weekend.
- Re-screen recent turn-downs. Borrowers previously declined for income over the AMI limit may now fit HomeReady or Home Possible — a quick win for your pipeline.
- Watch decreased-AMI counties. If a file is in process where the limit dropped, get it submitted/registered before June 13 to preserve 2025 eligibility under the pipeline-protection rules.
- Loop in your DD before re-disclosing if a borrower’s program eligibility or pricing changes because of the update — we’ll help you find the best fit.
Questions?
Contact your GMFS District Director