Homebridge is updating our Home Possible program guidelines to align with the update made by Freddie Mac in Bulletin 2019-07 issued April 3, 2019 regarding the number of financed properties a borrower may own.
With this update Freddie Mac Home Possible is aligning with the recent changes made by Fannie Mae on the HomeReady program regarding multiple financed properties.
Additionally, we are updating the Home Possible rental income received from a 1-unit primary residence topic to align with the changes announced by Freddie Mac in Bulletin 2019-16 issued July 10, 2019.
Multiple Financed Property Limit
The maximum number of financed properties a Home Ready borrower may own is now limited to two (2), including the subject property (previously there was no limit).
NOTE: This limit applies to the occupying borrower(s) only; any financed properties owned by a non-occupant borrower are not included in the property count.
- Home Possible transactions where a borrower owns more than 2 financed properties must close (sign) no later than August 30, 2019
- Home Possible transactions that do not close (sign) on or before August 30, 2019 are limited to a maximum of 2 financed properties
Rental Income Received from 1-Unit Primary Residence
Freddie Mac has added additional requirements when rental income is received on a 1-unit primary residence. The person providing the rental income:
- Cannot be obligated on the mortgage or have an ownership interest in the property, and
- Cannot be the borrower’s spouse or domestic partner.
- The new Home Possible rental income guidance for 1-unit primary residence properties applies to loans closing (signing) on or after September 20, 2019.
- Home Possible transactions under the old rental income guidance must close (sign) no later than September 19, 2019.
The Home Possible guidelines have been updated and posted on the Homebridge website at www.homebridgewholesale.com
If you have any questions, please contact your Account Executive.