December 20, 2024

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

Bulletin 2024-084 HomeReady Plus: Very Low-Income Purchase (VLIP) $2500 Credit Extension

Newrez LLC "Newrez" Approved Correspondent Clients; Fannie Mae has announced an extension to the HomeReady product for very low-income (VLIP) purchase borrowers. The $2500 loan level price adjustment credit has been extended for one additional year and Fannie-Mae 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.  

 

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

 

  1. 2567 - HomeReady Plus 30 Year Fixed Rate
  2. 2562 - HomeReady Plus 30 Year w/Community 2nd

 

  • 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.
  • Instructions for how to reflect the funds in DU can be found in the HomeReady VLIP LLPA Credit Job Aid. DU must reflect Special Feature Code (SFC) 884 HomeReady VLIP LLPA Credit.  

 

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 HomeReady product.
  • This program will be eligible for delivery to Fannie Mae through February 28, 2026.