Hey folks, happy spring! Hope you guys are doing well. I have a quick update for you. On Sunday, May 18th, Fannie and Freddie made, they came out with the new, down here, the 2025 area median income limits.
So what does that mean? That’s the level of income that you can make where you can qualify for different discounts where they waive some of the hits that you take to the loan based on the fact of your FICO scores, things like that.
It’s a big deal. Anyway, what does all this mean, and how does it affect you? There’s basically, there’s a lot on the top, I’m gonna show you here.
There’s four different programs, and we’re not gonna go too far down the route, I promise ya. But, uh, Home Ready is Fannie’s version, and then Freddie’s got these other three home possible, Home 1 and Bar, smart.
Long story short, it’s based on the income. So if you come down here, Salt Lake County, right here, um, it went up from 2024, about 5 grand.
So this means if you make $97,200 a year, which is $8,100 a month, you are at 80% of the area median income.
If you’re at 80% or less, that means over here — as I look over here, um, we have the ability to do a, uh, a uh, a pricing incentive, uh, basically we can get them, uh, about a quarter percent off their interest rate, and they don’t have, um, any additional hits to, uh, if their credits lower or things like that, um, they don’t have any hits to being able to take advantage of that. So that’s kind of a big deal.
And then the other one, um, uh, is if you’re between 80 and 100%, so 100% now in Salt Lake County is actually little more than 10 grand a month.
Which the math doesn’t seem right on that, but I guess it is. So, $121,500, if you make, you know, $10,125 or less a month, um, you can qualify it as well to not be able to take these, these hits that kind of blow up your interest rate, um, and you don’t even have to be a first-time home buyer, uh, on most of these, on, on one of them you do, but, uh, so if somebody makes a decent amount of money, there’s two of them, and one of them’s a first-time home buyer, like, uh, maybe even a, uh, a parent co-signing for a kid, as long as they don’t make together more than 121 grand, that kid might not take the hits for having a lower credit score, which kids usually do. So, the point is, is that, you know, this is a good thing that these limits are now higher, and that, um, folks can qualify to get cheaper financing.
So, uh, again, this is kind of in the weeds, but I want you to be aware of it. So, if you have questions on this or anything else, please reach out to me.
Thanks for watching, and we’ll talk to you soon. Take care.
