FHA Eligibility Update, Freddie Mac Updates 25-033

Correspondent Announcement

Guideline Updates

FHA Eligibility Update

Effective for loans registered on or after May 15, 2025, Non-Permanent Resident Aliens will no longer be eligible for FHA financing. Any FHA loans currently registered with a Non-Permanent Resident Alien will continue to be processed, provided the FHA Case Number is dated on or prior to May 24, 2025.

Freddie Mac Update

Area Median Income Limits have been updated for 2025 and will be effective for Freddie Mac loans submitted or resubmitted to Loan Product Advisor on or after May 18, 2025.

Freddie Mac
Topic Loan Product Advisor will apply the updated 2025 Area Median Income limits as follows:

Freddie Mac Area Median Income Limits

Area Median Income & Property Eligibility Tool

25-033 Arc Home LLC Wholesale Lending Announcement FHA Eligibility Update, Freddie Mac and USDA Updates Released 5.13.2025

If the Mortgage is submitted as a Home Possible Mortgage on or after May 18, 2025

Then the following income limits are applied:
  • The last submission before May 18, 2025, was also a Home Possible Mortgage, and
  • The income limits were met
  • The higher of the following income limits:
  • 2024 Area Median Income limits at 80% of the Area Median Income
  • OR
  • 2025 Area Median Income limits at 80% of the Area Median Income

The higher of the following income limits:

  • 2024 Area Median Income limits at 80% of the Area Median Income
  • OR
  • 2025 Area Median Income limits at 80% of the Area Median Income

2025 Area Median Income limits at 80% of the Area
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