December 20, 2024

Home Possible Plus: Very Low-Income Purchase (VLIP) $2500 Credit Extension

Bulletin 2024-083 Home Possible Plus: Very Low-Income Purchase (VLIP) $2500 Credit Extension

Newrez LLC "Newrez" Approved Correspondent Clients; Freddie Mac has announced an extension to the Home Possible product for very low-income (VLIP) purchase borrowers. The $2500 loan level price adjustment credit has been extended for one additional year and Freddie Mac has also updated the eligibility to require that at least ONE borrower be an occupying first -time homebuyer. A reminder that if ALL borrowers are first-time homebuyers, then at least one borrower must complete an acceptable home ownership education class prior to the Note date. 

 

Home Possible Plus: Very Low-Income Purchase (VLIP) Loans must be registered in the following product codes:

 

  1. 2565 - Home Possible Plus 30-Year Fixed Rate
  2. 2566 - Home Possible Plus 30- Year Fixed

 

    • For Best Effort Transactions Loans where no borrowers are First-Time Homebuyer and the applications are dated prior to December 20, 2024, must be delivered to Newrez by January 06, 2025, and purchased by Newrez by January 31, 2025.
    • For Bulk Transactions- Loans where no borrowers are First-Time Homebuyer and the applications are dated prior to December 20, 2024, must be delivered to Newrez by January 13, 2025, and purchased by Newrez by January 31, 2025.
    • Loans with application dates on and after December 20, 2024, require at least one borrower on the loan to be an occupying First-Time Homebuyer.
    • As a reminder, the loan level pricing adjustment of $2500, will be applied to borrowers whose total qualifying income is less than or equal to 50% of the applicable area median income limit for the subject property’s location. The full amount of the credit must be provided directly to the borrower and applied to down payment or closing costs, including escrows and mortgage insurance premiums. The $2,500 grant may be used to offset the 3% contribution due from borrower personal funds.

 

Please Note:

 

  • The total credit must be listed as a Grant in section L of the Final Closing Disclosure.
  • The Plus is a Newrez designation for the enhancement to the Home Possible product.
  • This program will be eligible for delivery to Freddie Mac through February 28, 2026.