Affordable Housing Income Limits Change This Month

Mortgage and Lending with Heartland Bank NMLS 461421

Income limits that affect Affordable Housing and Community Investment Act (CRA) lending changed as of 7/1/2016.  The change is for the median family income calculation for all census tracts in the U.S.  If you have buyers that are currently pre-qualified under this type of program it’s a good time to ask for your clients financing letter to be updated.  These changes can affect all states and counties and below are some of the programs that fall in this category.

State Housing Financing Agencies:

In Ohio the program is with the Ohio Housing Finance Agency (OHFA).  The income limit for this program is 1.20% of the median family income for the census tract of the proper for the down payment assistance grant and 100% for the Mortgage Tax Credit program. 

Additional Grant Assistance programs:

For the Communities First grant he income limits this grant of 3,4,or 5% in down payment assistance is slightly above 100% median family income for the census tract. I typical refer to this program as the “True Grant” since it never requires any repayment and can be refinanced to a lower rate at any time without penalty.

Fannie Mae and Freddie Mac programs:

Both the Fannie Mae Home Ready program and Freddie Mac Home possible rely on this information as well. Their income limits are currently set at 100% of the median income.  This is a recent change as their previous calculation was only 80% of the median income. 

Champ Loan 95% 30 year fixed portfolio:

The community lending portfolio program available in Ohio , Indiana, and Kentucky that we have available is also set to the median income. My Champ loan is set to 80% of the median income and is available to First Time Homebuyers or someone who has not owned a property in 3 years. However we do not have an income limit or first time buyer requirement for properties located in a low/ moderate income census tract.

My Champ loan does not require mortgage insurance for credit scores of 680+ and has a reduced MI with a starting credit score of 650.

Champ is also available with for Condominiums and includes Non-Conforming Condominiums with the same rates and term



Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

I don't think a lot of home buyer's realize there is down payment assistance available it is good to see you share this information. I hope you have a great weekend.

Jul 09, 2016 03:56 AM