In a move that opens more doors to homeownership, Area Median Income (AMI) limits across the U.S. have been raised for 2025, bringing significant benefits for first-time homebuyers. According to updated guidelines from Fannie Mae and Freddie Mac, borrowers who earn less than 100% of their local AMI can now qualify for the most favorable interest rates, even with a low credit score (as low as 620) and a small down payment.
Why This Matters
Thanks to the new rules, qualified borrowers can now receive interest rates as low as those offered to buyers with excellent credit and a 40% down payment. This creates an incredible opportunity for individuals and families who may not have perfect credit or large savings, but who are ready to purchase a home.
Updated 2025 AMI Figures by City
The new AMI levels mean more people qualify for enhanced mortgage pricing. Here are sample figures for several major metro areas:
How to Check Your Eligibility
Curious whether you qualify based on your income or want to see what kind of interest rate you could get? It’s quick and easy to find out. Visit www.loanfactory.com to check your local AMI, compare interest rates, and get personalized recommendations.
Final Thoughts
Higher AMI thresholds mean more first-time homebuyers are now eligible for the best mortgage rates available, even without high credit or large down payments. If you’ve been thinking about buying your first home, now is a great time to explore your options.
Visit www.loanfactory.com today to get started.
