The below update was originally effective for all Freddie Mac loans with a Note Date on or after September 5, 2024. The effective date has been pushed back for all Freddie Mac loans with a Note Date on or after April 1, 2025. Credit Policy will send a reminder in first quarter of 2025.
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Freddie Mac |
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Topic |
New Guideline |
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Flood Insurance Premium Used for Qualifying |
If a flood insurance policy on the Mortgaged Premises shows a full risk premium and a discounted premium, the full risk premium, plus any fees and surcharges, must be used to calculate the housing expense-to-income and debt payment-to- income ratios. |