MPF Announcement 2025-03

MPF Xtra - HomeReady Product Enhancements 

Effective Date: Immediately (unless otherwise noted)

Fannie Mae published Lender Letter LL-2024-01 (updated), extending the $2,500 loan-level price adjustment credit for one additional year and updating eligibility to require at least one borrower to be a first-time homebuyer.

To address some of the barriers to entry for very low-income borrowers, Fannie Mae is temporarily offering a $2,500 LLPA credit to certain eligible HomeReady borrowers that can be used for down payment and closing costs.

The credit will be reimbursed through the standard LLPA credit process on the MPF Funding Date.

Originators must ensure:

• the Borrower and loan meets the eligibility requirements outlined in the Lender Letter and Selling Guide, such as:
  • The loan must be an eligible HomeReady purchase loan (underwritten in Desktop Underwriter® (DU®) or manually underwritten).
  • The borrower(s) must have total qualifying income less than or equal to 50% of the applicable area median income (AMI) limit for the subject property’s location.
  • At least one borrower on the loan must be a first-time homebuyer.
    
• the loan must be delivered using the following Special Feature Codes:
  • 900 HomeReady loan, and
  • 884 HomeReady VLIP LLPA Credit.
  • For additional DU and delivery instructions, refer to the HomeReady VLIP LLPA Credit Job Aid.

Effective: This credit will be effective for loans delivered through February 28, 2026.

To gain a full understanding of these topics, PFIs should review the entire Fannie Mae Lender Letter plus any applicable Fannie Mae Selling Guide chapters, forms, or exhibits noted in the announcement.

If you have any questions, please contact the MPF Service Center via email MPF-Help@fhlbc.com or phone (877-345-2673).