Home Possible Income Limits Overview
Home Possible is Freddie Mac’s affordable mortgage program for low- to moderate-income households. Eligible borrowers must earn an income no more than 80% of the home location's Area Median Income (AMI).
📊 Key Statistic
What Counts Toward Income for Home Possible
Home Possible is a conventional mortgage program, so it uses conventional mortgage rules for income inclusion and documentation.
Not all household income is eligible to be used on a Home Possible application which means that not all income will count toward the program's 80% AMI limit. Only qualifying income counts.
Qualifying income for a Home Possible mortgage includes:
- Base wages or salary
- Overtime, bonuses, and commissions
- Self-employment income
- Rental or boarder income (subject to Freddie Mac rules)
- Certain non-taxable income such as Social Security or disability benefits
Non-qualifying income includes:
- Income from household members not on the loan application
- Undocumented cash gifts
- Temporary or seasonal work that cannot be verified
- One-time or irregular payments
Reference Guide: Home Possible Income Eligibility
| Income Type | Eligible? | Example |
|---|---|---|
| Base wages or salary | Yes | Income from a regular office job |
| Overtime, bonuses, commissions | Yes | Quarterly bonus, extra shift pay |
| Self-employment income | Yes | Income from a side business |
| Rental or boarder income | Yes | Rent from a basement apartment tenant |
| Certain non-taxable income | Yes | VA disability, child support payments |
| Income from non-borrower household | No | Parent’s income not on the application |
| Undocumented cash gifts | No | Cash gift from a friend with no receipt |
| Seasonal/short-term contracts | No | Holiday retail job, short-term gig |
| One-time payments | No | Insurance payout, one-time referral fee |
For more on documentation, see our Home Possible Loan Requirements Guide.
How the 80% AMI Income Limit Works
Every U.S. property has an Area Median Income (AMI), based on its location. To be Home Possible-eligible, a home buyer's qualifying income must not add up to more than 80% of the AMI figure.
For example, in Lincoln, Nebraska, if the median income is $66,373, the Home Possible income limit would be 80% of that number, or $53,098.
If you’re buying outside a metropolitan area, AMI is calculated at the county or state non-metropolitan level. That ensures every property, whether in a city, suburb, or rural community, has an income cap for Home Possible eligibility.
Here are sample income limits for selected metro areas:
| Metropolitan Statistical Area | 100% AMI | 80% AMI |
|---|---|---|
| Abilene, TX | $56,034 | $44,827 |
| Albuquerque, NM | $57,278 | $45,822 |
| Dallas-Fort Worth-Arlington, TX | $74,165 | $59,332 |
| Appleton, WI | $64,216 | $51,373 |
| Fayetteville-Springdale-Rogers, AR | $89,095 | $71,276 |
| Tampa-St. Petersburg-Clearwater, FL | $63,789 | $51,031 |
| Charleston-North Charleston, SC | $68,486 | $54,789 |
| Denver-Aurora-Lakewood, CO | $89,297 | $71,438 |
| Orlando-Kissimmee-Sanford, FL | $57,774 | $46,219 |
| Anniston-Oxford, AL | $44,737 | $35,790 |
Use our Income Limits calculator to see if you earn too much to qualify based on where you live.
Income Limits and Co-Borrowers
The 80% AMI limit applies to all borrowers listed on the loan. However, Freddie Mac gives flexibility in how income from other household members may be used:
For example, if you have a parent, roommate, or adult child living with you, their income isn't automatically counted toward your 80% AMI limit, and lenders can consider that income as support for your application.
Home Possible can be especially good for households with shared living arrangements.
Non-Borrower Household Income and Home Possible
| Who? | Counts? | Lender Use | Example |
|---|---|---|---|
| Overtime pay | Yes | Qualifying income | Picking up weekend shifts |
| Rental unit | Yes | Qualifying income | Income from a garage apartment |
| Roommate | No | Compensating factor | Covers half the utilities |
| Parent in home | No | Compensating factor | Pays for groceries each month |
| Alimony | Yes | Qualifying income | Monthly divorce settlement |
| Spouse not on loan | No | Compensating factor | Pays for property taxes |
How to Check Your AMI
Check AMI Income Limits for Home Possible®
Enter any U.S. property address to see its AMI Income limit.
Based on Freddie Mac area limits; amounts may change. Home Possible® is a registered trademark of Freddie Mac.
To find out if your income is within Home Possible's 80% AMI limit, use our Home Possible income eligibility lookup tool.
Here’s how:
- Enter the property address or select the state, county, and city.
- Review the results for the property’s Area Median Income and the 80% AMI limit for HomeReady.
If your qualifying income is at or below the shown limit, you may meet this part of the eligibility rules. For other requirements, see our Home Possible Loan Requirements Guide.
Key Takeaway
Home Possible loans are available to borrowers with qualifying income no greater than 80% of the local Area Median Income (AMI). The limit applies to both purchases and refinances, and only qualifying income counts. Non-borrower household income can be considered as a compensating factor but won’t affect the AMI cap.
Frequently Asked Questions About Home Possible Income Limits
Find answers to common questions about the 80% AMI income rules for the Home Possible mortgage program.
What is the Home Possible income limit?
80% of the Area Median Income (AMI) for the property's location.
Does the income limit apply to refinances?
Yes. The limit applies to both purchase and no cash-out refinance loans.
Is it based on household income or borrower income?
Only income used to qualify for the loan is counted toward the limit.
How can I check my area's AMI?
Use Freddie Mac's online Home Possible income eligibility tool or ask your lender.
What happens if my income is over the limit?
You will not be eligible for Home Possible, but other conventional loan options may be available.
