The Federal Housing Finance Agency (FHFA) recently issued area median income (AMI) limits for 2025. There was an increase in the AMI in the DMV, which means that we can now offer affordable lending opportunities to more borrowers. The AMI impacts who will qualify for the lower rates offered through HomeReady/HomePossible and the lower rates for first-time homebuyers.

The AMI for the DMV (including Frederick) is $162,000. To qualify for HomeReady/HomePossible, household income needs to be no greater than $129,600 (80% of the AMI). To qualify as a first-time homebuyer, household income can be no greater than $194,400 (120% of the AMI).

Interestingly, Fannie Mae and Freddie Mac define a first-time homebuyer as someone who has not owned a home within the last three years. Also, first-time homebuyers include those leaving their marital homes and buying another home.

Depending on the loan-to-value, type of property, and credit score, qualifying for these programs can improve your interest rate by as much as half a percent, which is impactful. Please contact me if you would like to explore homeownership.