Program Updates for 2020

The Communities First Down Payment Assistance Program underwent some changes for the new year. Here’s a quick overview:

FHA Loans

• Borrowers with credit scores 640 and higher are eligible for FHA loans. Note that there is limited availability for credit scores ranging from 640 to 659)

Maximum Debt-to-Income Expanded

• The maximum Debt-to-Income (DTI) has been expanded to allow DTI of 45.01% to 50% for borrowers with a minimum credit score of 680 on both FHA and Conventional loans.

Freddie Mac HFA Advantage Affordable Income Subsidy

• Freddie Mac has made policy changes to Freddie Mac HFA Advantage Affordable Income Subsidy (AIS).
• Borrowers whose income is less than 80% AMI will no longer receive an AIS subsidy, however, the interest rates offered will be more attractive.
• For borrowers whose income is above 80% AMI, they will no longer receive pricing benefits and they will also be required to obtain standard MI coverage.