Fannie Mae and Freddie Mac have announced an increase in the Area Median Income (AMI) limits effective May 18, 2025—a positive step toward improving housing affordability and accessibility. These limits help determine eligibility for a range of affordable housing programs, such as HomeReady, Home Possible, and the First-Time Homebuyer (FTHB) AMI Loan-Level Price Adjustment (LLPA) waiver. The increase allows more individuals and families to qualify for affordable mortgage options with reduced costs and more flexible underwriting standards.
In the Washington, D.C. Metro area, the AMI limit is rising from $152,900 to $162,000. This change reflects local income growth and rising housing costs, ensuring that eligibility thresholds keep pace with the region’s economic landscape. Notably, the FTHB AMI LLPA waiver program will now be available to borrowers earning up to $194,400—an increase that expands access to pricing benefits for a broader range of first-time buyers. Additionally, the HomeReady and Home Possible income limits will improve to $129,600, offering greater support to moderate-income households across the area.
The 2025 AMI limit increases represent a timely and meaningful step toward expanding access to sustainable homeownership. By better reflecting current economic conditions, these changes help more working families and essential workers qualify for affordable housing options. This creates stronger, more inclusive communities where families can build equity, stability, and generational wealth. For many hopeful homeowners in the D.C. Metro area and beyond, these updates open new pathways to long-term housing security and financial resilience.
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