New 2023 AMI Limits
FHFA has just released the 2023 Area Median Income Limits!
In response, Freddie Mac issued Updated AMI Limits to Qualify More Borrowers, which indicates Loan Product Advisor (LPA) will be updated effective June 8th, 2023.
Fannie Mae issued 2023 Area Median Incomes Selling Announcement which indicates Desktop Underwriter (DU) will be updated effective Monday, June 12th, 2023.
We will be unable to rely on Optimal Blue to support the findings for eligibility until June 12th when they roll their update.
Please be aware that for the various programs that are dependent on the Area Median Income each investor will be handling it a bit differently.
Freddie:
- If the AMI has increased for the subject county and the application was submitted before the 8th, LPA will use the higher 2023 AMI for determining eligibility
- If the Application date is on or after the 8th then you must use the new 2023 AMI Values, regardless of what is higher
Fannie:
- If the application received date is before the 12th of June 2023, then Fannie will use the 2022 values for determining eligibility
- If the application received date is after the 12th of June 2023, then Fannie will use the 2023 values for determining eligibility
Of these, a few parishes/counties have had their area median income lowered, which may make some borrowers ineligible for certain products or pricing waivers.
Anything that has an application date after the date listed will be affected June 8th for Freddie Loans, and June 12th for Fannie loans.
While these will also be supported by updates to DU and LP, please be aware that making sure your borrower is still eligible with the new Area Median Income is your responsibility.