 Reminder: Huge News for Our Over 80% Area Median Income Limit Borrowers!
Effective for loans locked on or after November 16, 2022, both Fannie Mae and Freddie Mac have made pricing changes to all HFA Preferred™ and HFA Advantage® loans. All conventional borrowers who are eligible for the Minnesota Housing Start Up or Step Up loans will receive the same interest rate (by SRP option selected), whether they are over 80% AMI or not.
Update: The conventional Up Front Paid Mortgage Insurance (UPMI) option is now available for under and over 80% AMI borrowers. Previously, it was only available to our under 80% AMI borrowers.
What about the MI coverage?
You must still follow your findings regarding the level of mortgage insurance that is required for your loan. Only borrowers with loan qualifying income under 80% AMI are eligible for charter rate MI.
What if my loan qualifying income changes?
If the borrower's qualifying income changes from over to under 80% AMI or vice versa, you will receive a message requiring you to reprice the loan. To clear the message, you must reprice and re-lock the loan, but the original pricing will remain.
Can you get a Start Up or Step Up loan without a downpayment loan?
Yes! Our loans do not have loan level pricing adjustments, so that can provide a rate advantage that makes a Start Up or Step Up loan a great option even without a downpayment and closing cost loan.
Minnesota Housing Closed for Thanksgiving
Minnesota Housing will be closed on Thursday, November 24 and Friday, November 25 for Thanksgiving. Lenders will be unable to lock new loans between 5:00 p.m. on Wednesday, November 23 and 10:00 a.m. on Monday, November 28.
Upcoming Lender Trainings
Join Minnesota Housing for our series of monthly training webinars. The trainings will lay out the basics of our Start Up, Step Up, or Downpayment and Closing Cost Loans, how they work, what eligibility criteria is required and review how to access tools and resources to help you successfully originate loans. These instructor led trainings provide a great opportunity to ask questions. We look forward to partnering with you!
The webinars take place on Thursdays from 9:00 - 10:30 a.m. CST. Please click the links below to register:
Same Great Call with a New Name
The Monthly Update & Hot Topics Call (FKA the Monthly Update and Underwriter Call) is open for everyone to attend, not just underwriters. During these calls we review recent Minnesota Housing updates and important information to help you originate and process our loans. Lenders are welcome to submit questions or topics to discuss on the call. This is a great venue to have more in-depth discussion on advanced topics
Please go here to register.
When you register, you will be signed up for all sessions in the series but can attend the sessions that work for you. Calls occur on the second Thursday of the month from 9:00 a.m. - 10:00 a.m. CST.
Upcoming Sessions:
eLearning Training Courses
Are you interested in learning more about Minnesota Housing loan programs, requirements, and how they work? The eLearning training courses are a great place to start. These self-paced training modules lay out the basics of the Start Up and Step Up programs, eligibility and income requirements, down payment and closing cost loans, and much more! To view a complete list of courses, visit the Homeownership Training page and select eLearning Courses.
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 8:00 a.m. and 5:00 p.m. on business days.
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